Copper Nears $12,000 A Ton As Base Metals Stage Broad Rally

Copper neared a record high, with a renewed rally in US tech stocks helping to boost investor sentiment at a time of tightening supply in many metal markets.

Prices for the bellwether industrial metal rallied as much as 1.3% to $11,928 a ton, within $25 of an all-time high and nearing the $12,000 mark. Prices have climbed by more than a third this year, bolstered by mine outages, a surge in US imports and a bullish outlook for usage linked to artificial intelligence.

Tin — another crucial metal for the tech industry — has rallied nearly 50% this year, and hit a fresh three-year high on Friday amid renewed gains in AI-focused stocks. Aluminum also reached the highest price since 2022, with the looming shutdown of a smelter in Mozambique adding to worries about supply as plants in China face a cap on output.

Nickel advanced for a third day, extending its rebound from an eight-month low on the prospect of reduced supply from top producer Indonesia.

The metal rose as much as 1.6% on Friday, two days after Indonesia proposed cutting nickel ore production in 2026. The government’s work plan budget for next year envisages output of about 250 million tons, down from this year’s goal of 379 million tons.

The planned reduction is a response to a slump in nickel prices. The metal, used in stainless steel and electric-vehicle batteries, has declined roughly by half over three years on the London Metal Exchange as production in Indonesia, as well as China, outpaces global demand.

Indonesia’s Ministry of Energy and Mineral Resources also plans to revise its benchmark pricing formula for nickel ore in early 2026, a move that would classify byproducts such as cobalt as separate commodities subject to royalties, Bloomberg Technoz reported, citing Indonesian Nickel Miners Association Secretary General Meidy Katrin Lengkey.

"Going into 2026, if the cut does take place, then our view is that nickel is likely to outperform the rest of the base metal complex,” Bernard Dahdah, an analyst at Natixis, said in an emailed note. "Most metals in the complex have already reached record highs, and as such the price increase momentum is likely to slow down, if not reverse in some cases."

Nickel on the LME closed 1.1% higher at $14,803 a ton as of 5:51 p.m. local time. Copper settled 0.9% higher at $11,881.50 a ton and aluminum closed up 1% at $2,945 a ton.

Bloomberg Technoz is a partnership between Mayapada Group’s PT Berita Mediatama Indonesia and Bloomberg Media Group, a division of Bloomberg LP.