METALS-Copper edges up on softer dollar and Iran-Israel ceasefire

By Polina Devitt

LONDON, June 24 (Reuters) - Copper prices hit their highest in almost two weeks on Tuesday with support from the weaker dollar after U.S. President Donald Trump's announcement of a ceasefire between Israel and Iran.

Three-month copper CMCU3 on the London Metal Exchange was up 0.1% at $9,673 a metric ton by 1615 GMT, after earlier touching $9,760.50, its highest since June 11.

The ceasefire news sparked a broad risk rally across markets and saw the dollar weakening. A softer U.S. currency makes dollar-priced metals more attractive for buyers using other currencies. FRX/

For growth-dependent copper, support from the weaker dollar was partly offset by remarks from Federal Reserve Chair Jerome Powell, who said he would not open the door to a rate cut at the Fed's July meeting.

The metals market's attention was on continuing outflows from copper stocks in LME-registered warehouses MCUSTX-TOTAL, which combined with large holdings of cash copper contracts and warrants - title documents conferring ownership - to inflate premiums for near-term contracts.

The premium for the cash copper contract over the three-month forward CMCU0-3 eased to $151 a ton on Tuesday. It had closed at $280 on Monday, its highest since November 2021, indicating tightness in the LME copper system.

Copper inventories in LME-approved warehouses are down 65% since mid-February at 94,675 tons, their lowest since August 2023, as some traders diverted metal to the U.S. to benefit from COMEX copper futures' premium over the LME benchmark LMECMXCUc3 while Washington continues to consider potential tariffs on copper imports.

"The metal drips out of the warehouses every day," one metals trader said. "The LME copper price is so much lower than Comex that the LME (system) can't attract deliveries."

In other LME metals, aluminium CMAL3 fell 0.4% to $2,577 a ton as the Iran-Israel ceasefire drove down oil prices and removed the immediate threat to the Strait of Hormuz shipping lane for Middle East aluminium producers.

Aluminium, the smelting of which requires large amounts of energy, touched a three-month high of $2,654.50 on Monday.

LME lead CMPB3 rose 0.9% to $2,020 after hitting $2,029, its highest since March 31, while zinc was steady at $2,685.

Both metals were supported by outflows from the LME stocks and additional metal marked as being prepared for delivery out. 0#MZNSTX-LOC, 0#MPBSTX-LOC

Tin CMSN3 lost 0.9% to $32,300 while nickel CMNI3 gained 0.9% to $14,930.

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