METALS-London metals ease on dollar strength; Middle East conflict in focus

By Hongmei Li and Michele Pek

SINGAPORE, June 19 (Reuters) - 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 CMCU3 was down 0.52% at $9,605 per metric ton, as of 0715 GMT.

LME aluminium CMAL3 slipped 0.6% to $2,532, while tin CMSN3 lost 0.8% to $32,100, zinc CMZN3 shed 0.8% to $2,615.5, lead CMPB3 inched 0.18% lower to $1,989.5, and nickel CMNI3 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. USD/

A higher dollar usually makes greenback-priced commodities more expensive. FRX/

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 SCFcv1 lost 0.39% to 78,310 yuan ($10,891.36) a ton.

SHFE nickel SNIcv1 gained 0.46% to 118,890 yuan a ton and lead SPBcv1 gained 0.53% to 16,925 yuan, while tin SSNcv1 inched down 0.05% to 263,300 yuan, aluminium SAFcv1 eased 0.24% to 20,585 yuan, and zinc SZNcv1 shed 0.59% to 21,865 yuan.

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DATA/EVENTS (GMT)

1100 UK BOE Bank Rate June

($1 = 7.1901 Chinese yuan)

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