METALS-London metals slip as dollar firms, Middle East tensions escalate

By Brijesh Patel

June 17 (Reuters) - Prices of metals in London dropped on Tuesday, weighed down by a stronger dollar and as escalating tensions between Israel and Iran dented risk appetite among investors.

Three-month copper on the London Metal Exchange CMCU3 was down 0.3% at $9,673.50 per metric ton, as of 0124 GMT.

LME aluminium CMAL3 eased 0.1% to $2,511.50 a ton, zinc CMZN3 fell 0.4% to $2,649, lead CMPB3 slipped 0.4% to $1,998.50 and nickel CMNI3 fell 0.4% to $15,005. Tin CMSN3 was down 0.4% at $32,505.

The SHFE most-traded copper contract SCFcv1 gained 0.3% to 78,500 yuan ($10,934.67) per metric ton.

Israel and Iran attacked each other for a fifth straight day on Tuesday, and U.S. President Donald Trump urged Iranians to evacuate Tehran, citing what he said was the country's rejection of a deal to curb nuclear weapons development.

U.S. stock futures slipped and oil prices climbed, as geopolitical tensions in the Middle East erupted. MKTS/GLOB

The dollar index .DXY rose 0.3% against its rivals. A firmer dollar makes greenback-priced commodities more expensive for buyers using other currencies. =USD

Offering some respite, better-than-expected retail sales data from China on Monday raised hopes of a boost to metals demand in the country.

Meanwhile, the U.S. intends to impose a quota on steel and aluminum imports from the United Kingdom that would be exempt from 25% tariffs as part of deal announced between the two countries during the G7 Summit on Monday.

SHFE aluminium SAFcv1 was little changed at 20,400 yuan a ton, lead SPBcv1 was flat at 16,915 yuan, nickel SNIcv1 fell 1.1% to 118,400 yuan, while zinc SZNcv1 gained 0.3% at 21,870 yuan and tin SSNcv1 fell 0.4% to 263,620 yuan.

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