METALS-Copper starts New Year higher, aluminium hits 3-1/2-year top

SINGAPORE, Jan 2 (Reuters) - London copper rose almost 1% on Friday, starting the New Year on a positive note after prices surged over 40% to record highs in a stellar 2025, while aluminium hit its highest since May 2022.

Three-month copper on the London Metal Exchange CMCU3 climbed 0.9% to $12,537 per metric ton by 0556 GMT. China's Shanghai Futures Exchange SCFcv1 was closed for a holiday.

LME aluminium CMAL3 was little changed after climbing to its highest since May 2022 at $2,998 a ton.

LME copper hit a record high last year, rising 42% as a weaker U.S. dollar, booming demand from artificial intelligence and renewable energy, and mine supply disruptions drove the rally.

The U.S. dollar made a feeble start to 2026 on Friday after struggling against most currencies last year, while the yen steadied near 10-month lows as traders awaited economic data this month to gauge the path of interest rates. USD/

A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.

In 2026, prices of copper, widely used in the power and construction sectors, will take direction from demand in China.

China's factory activity unexpectedly grew in December, snapping a record eight-month decline, lifted by a rise in pre-holiday orders as officials seek to spur the $19 trillion economy's manufacturing sector without worsening deflation.

Among other metals, zinc CMZN3 rose 0.1% to $3,121.5, lead CMPB3 added 0.1% to $2,012, tin CMSN3 gained 0.7% at $40,825 and nickel CMNI3 rose 1.2% to $16,850.

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX