London metals ease on dollar strength; Middle East conflict in focus
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London metals dropped on Thursday as a stronger dollar weighed on prices, with markets focused on developments in the Israel-Iran conflict.
The LME's three-month copper was down 0.52% at $9,605 per metric ton, as of 0715 GMT.
LME aluminium slipped 0.6% to $2,532, while tin lost 0.8% to $32,100, zinc shed 0.8% to $2,615.5, lead inched 0.18% lower to $1,989.5, and nickel was flat at $15,050.
The dollar firmed, buoyed by safe-haven demand due to the looming threat of a broader conflict in the Middle East and possible U.S. involvement.
A higher dollar usually makes greenback-priced commodities more expensive.
Investors closely watched tensions in the Middle East tensions as U.S. President Donald Trump kept the world guessing about whether Washington would join Israel's bombardment of Iranian nuclear sites as the conflict entered its seventh day.
In the longer term, "any sustained spike in energy prices is likely to ultimately weigh on the copper market due to the higher cost to producers," ANZ said.
Copper supply was tight, with stocks <MCUSTX-TOTAL> in LME-registered warehouses at 107,350 tons dropping 60% since March, and are at their lowest since May 2024.
SHFE's most-traded copper contract lost 0.39% to 78,310 yuan ($10,891.36) a ton.
SHFE nickel gained 0.46% to 118,890 yuan a ton and lead gained 0.53% to 16,925 yuan, while tin inched down 0.05% to 263,300 yuan, aluminium eased 0.24% to 20,585 yuan, and zinc shed 0.59% to 21,865 yuan.
