METALS-Copper prices flat as traders assess geopolitical risks, supply constraints

By Hongmei Li

SINGAPORE, June 19 (Reuters) - Copper prices on the Shanghai Futures Exchange and London Metal Exchange were largely flat on Thursday, as the market focused on developments in the Israel-Iran conflict while tight supply provided price support.

The LME's three-month copper CMCU3 was nearly flat, up $2 to $9,657.50 per metric ton by 0107 GMT, while SHFE's most-traded copper contract SCFcv1 was also little changed, down 30 yuan to 78,590 yuan ($10,930.31) a ton.

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.

On Wednesday, the U.S. central bank held interest rates steady, signalling that borrowing costs are still likely to fall in 2025,(nL6N3SL0HH), and the U.S. dollar index .DXY traded higher against most major currencies.

A higher dollar usually makes greenback-priced commodities more expensive, capping gains on the prices of metals.

LME aluminium CMAL3 was flat at $2,546, while tin CMSN3 firmed by 0.3% to $32,465, zinc CMZN3 gained 0.1% at $2,640, lead CMPB3 inched 0.1% higher to $1,995.5, and nickel CMNI3 rose 0.1% to $15,065.

SHFE nickel SNIcv1 gained 0.6% to 119,030 yuan a ton, tin SSNcv1 rose 0.3% to 264,240 yuan, aluminium SAFcv1 advanced 0.2% to 20,680 yuan, lead SPBcv1 gained 0.2% to 16,870 yuan, while zinc SZNcv1 eased 0.1% to 21,980 yuan.

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DATA/EVENTS (GMT)

1100 UK BOE Bank Rate June

($1 = 7.1901 Chinese yuan)

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