METALS-Copper rebounds on softer dollar, Middle East de-escalation hopes

BEIJING, March 25 (Reuters) - Copper prices rebounded on Wednesday, as a softer dollar and renewed hopes of a de-escalation in the Middle East war bolstered demand prospects.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 1.36% to 95,800 yuan ($13,916.13) per metric ton by 0153 GMT.

Benchmark three-month copper CMCU3 on the London Metal Exchange climbed 1.49% to $12,281 per ton.

Market sentiment broadly improved after U.S. President Donald Trump said on Tuesday that the U.S. was making progress in its efforts to negotiate an end to the war with Iran, including winning an important concession from Tehran.

"The expectation of de-escalation between the U.S. and Iran has become a key force behind improved market sentiment," analysts at broker Everbright Futures said in a note.

"It highlights the market's vulnerability to geopolitical changes, but uncertainties are still there regarding the U.S.-Iran negotiation."

Copper prices in both Shanghai and London lost ground on Tuesday as elevated energy prices amid a prolonged Iran war intensified concerns over inflation and global economic growth outlook.

A softer greenback .DXY, =USD, which makes dollar-priced commodities cheaper for buyers using other currencies, also lent support to the base metals complex.

SHFE aluminium SAFcv1 added 0.8%, nickel SNIcv1 and lead SPBcv1 advanced 0.55% each, tin SSNcv1 climbed 3.94%, and zinc SZNcv1 edged up 0.13%.

Among other LME metals, nickel CMNI3 rose 1.3%, lead CMPB3 gained 0.61%, tin CMSN3 added 3.03%, zinc CMZN3 advanced 1.13%, while aluminium CMAL3 eased 0.51%.

($1 = 6.8841 Chinese yuan)