METALS-Copper edges higher on softer dollar, tentative Middle East truce

By Hongmei Li

SINGAPORE, June 25 (Reuters) - Copper prices on the London Metal Exchange and the Shanghai Futures Exchange edged higher on Wednesday, supported by a softer dollar and a tentative ceasefire between Iran and Israel.

LME three-month copper CMCU3 rose 0.6% to $9,728.5 per metric ton, as of 0701 GMT, and SHFE most-traded copper contract SCFcv1 rose 0.47% at 78,810 yuan ($10,990.56).

The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after U.S. President Donald Trump announced an end to the hostilities.

"Traders and investors are waiting for some definite signals amid all the uncertainty; the Israel-Iran ceasefire may not be final, and U.S. Federal Reserve Chair Jerome Powell's remarks on the interest rate cut have been neutral," a Beijing-based metals analyst from a futures company said.

The dollar weakened even after Powell said in testimony before the U.S. Congress that he and many at the Fed expect inflation to start accelerating soon, and that the central bank was currently in no rush to ease borrowing costs.

A softer U.S. currency makes dollar-priced metals more attractive for buyers using other currencies. FRX/

On Wednesday, SHFE lead SPBcv1 touched 17,200 yuan a ton and LME lead CMPB3 touched $2,030, both being a three-month high.

China's lead smelters have raised their offerings for used electric bike batteries, in preparation for better lead demand in summer months, and this helps primary lead prices too, a Shanghai-based metals analyst said.

E-bikes in China tend to replace rechargeable batteries more frequently in summer with the shortened lifespan in hot weather.

LME aluminium CMAL3 fell 0.39% to $2,569 a ton, while tin CMSN3 gained 0.78% to $32,570, zinc CMZN3 gained 0.71% to $2,700.5, and nickel CMNI3 up 0.6% to $15,010.

SHFE nickel SNIcv1 gained 1.17% to 118,600 yuan, zinc SZNcv1 gained 0.57% to 22,045 yuan, aluminium SAFcv1 inched up 0.12% at 20,355 yuan, while tin SSNcv1 slipped 0.07% to 263,000 yuan.

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DATA/EVENTS (GMT)

1000 France Unemp Class-A SA May

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