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

SINGAPORE, Jan 2 (Reuters) - London copper rose at the start of trading in the New Year on Friday after a stellar 2025, as a weaker U.S. dollar continued to lend support, while aluminium hit its highest since May 2022.

Three-month copper on the London Metal Exchange CMCU3 climbed 0.8% to $12,519.50 per metric ton by 0807 GMT. China's Shanghai Futures Exchange SCFcv1 was closed for a holiday.

LME aluminium CMAL3 rose 0.1% to $3,000 per ton, its highest since May 2022.

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 a 10-month low as traders awaited economic data to predict how central bankers direct interest rates this year.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 pre-holiday orders as officials seek to spur the $19 trillion economy's manufacturing sector without worsening deflation.

Among other metals, zinc CMZN3 rose 0.4% to $3,130.50, lead CMPB3 lost 0.3% to $2,004.50, tin CMSN3 gained 1% at $40,970 and nickel CMNI3 rose 1.6% to $16,905.