Aluminum price hits $3,000 for first time since 2022 on supply concern

Aluminum climbed above $3,000 a ton for the first time in more than three years on a tightening supply outlook and long-term demand bets, joining other base metals notching recent milestones.

A cap on Chinese smelting capacity and constraints to European production due to higher electricity prices have chipped away at global inventories, while the demand outlook from the construction and renewable sectors remains robust. Futures rallied 17% last year, the most since 2021.

Copper also resumed gains on Friday after capping the biggest annual gain since 2009 on tight supply, while nickel jumped after PT Vale Indonesia halted mining following a delayed approval to a work plan from the authorities.

Copper hit a series of all-time highs during an end-of-year surge, making it the best performer of the six industrial metals on the LME. Mines in Indonesia to Chile and the Democratic Republic of the Congo suffered accidents in 2025, while tariff concerns led traders to ramp up shipments to the US.

The red metal was 0.5% higher at $12,487.00 a ton as of 5:31 p.m. Singapore time after losing 1.1% in the previous session. Aluminum rose 0.4% to $3,008.00, on track for a third consecutive gain. Nickel climbed 1.2% to $16,845.00 after capping the biggest monthly increase in December since April 2024.

PT Vale Indonesia said its work plan approval is expected soon and the delay is unlikely to impact overall operational sustainability. Delays are not unusual in the Southeast Asian nation, but traders are honing in on supply after Indonesia said it planned to cut output this year.

Separately, iron ore futures in Singapore advanced 0.3% to $105.65 a ton. Chinese markets are closed for public holiday.

(By Annie Lee)