(Bloomberg) — Aluminum slipped from the highest level in more than three years and copper steadied near a record as investors mulled what’s next for metals after a powerful start to the year.

Industrial metals have enjoyed a bullish run into the new year, with copper hitting records above $13,000 a ton, and aluminum notching its highest since April 2022 on Monday. Still, there are concerns that underlying demand — especially in China — could soften, while geopolitical risks remain elevated.

President Donald Trump’s announcement this week that he plans to charge tariffs on any country doing business with Iran risks complications with China, just months after the world’s two biggest economies agreed a trade truce. While the precise impact remains unclear, a resurgence in tensions between the two nations could hurt risk assets, including metals.

The LMEX Index that tracks the main six base metals closed at the highest since March 2022 on Monday, after a five-month gain. The advance has been underpinned by expectations that supplies will struggle to keep pace with demand, as the Federal Reserve keeps cutting interest rates.

The artificial-intelligence boom has also spurred enthusiasm for metals, particularly copper, needed for data centers and electronics. Copper has also been aided by speculative buying in China.

Among the half-dozen, tin has been the standout performer on the London Metal Exchange this year, nearing a record above $51,000 a ton after surging almost 40% in 2025. A crackdown on miners in major producer Indonesia crimped supply last year, and the industry is waiting to see how exports unfold.

Aluminum was 0.2% lower at $3,177 a ton on the LME as of 1:02 p.m in London, while copper was 0.1% higher at $13,226 a ton. Tin rose 1.6%, after rallying 5.3% on Monday.

–With assistance from Mark Burton.

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