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 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 authorities.

The company said the 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.

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 London Metal Exchange.

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 main union at a Capstone Copper Corp-operated mine in northern Chile began a strike Friday as members push for a bigger share of the windfall from the record prices.

The red metal was 0.4% higher to close at US$12,469.50 a tonne on the LME. Aluminum rose 0.7% to US$3,015.50, a third consecutive gain. Nickel climbed 1% after capping the biggest monthly increase in December since April 2024.