Base Metals Diverge: Copper Holds Firm as Aluminium Premium Fades

LME Week 2026 opened in London with industry focus split between AI-driven demand growth, energy transition metals, and critical mineral supply security. Exchange data shows average daily turnover rose 16% year-on-year from January through September, underscoring robust trading activity despite macro uncertainty.

Aluminium has shed the geopolitical risk premium it carried earlier in the war cycle, while copper remains structurally elevated on tight supply and sustained industrial demand tied to electrification and AI infrastructure buildout.

Standard Chartered's commodity desk expects a mixed trajectory for base metals through year-end, with differentiation between metals increasingly tied to specific supply chain exposure rather than broad risk sentiment.