METALS-Firmer dollar drags aluminium lower; US-Iran talks eyed

BEIJING, April 28 (Reuters) - Aluminium prices slid on Tuesday, dragged down by a broad risk-off mood and a firmer dollar, with lingering uncertainty over an end to the Iran war stoking concerns about inflation and global economic growth.

The most-traded aluminium contract on the Shanghai Futures Exchange SAFcv1 closed daytime trade 1.42% lower at 24,610 yuan ($3,600.95) per metric ton, its lowest since April 13.

By 0730 GMT, the benchmark three-month aluminium CMAL3 on the London Metal Exchange was down 0.59% at $3,557 per ton, its weakest since April 22.

U.S. President Donald Trump is unhappy with Iran's latest proposal to resolve the two-month-long war, a U.S. official said, dampening hopes for a resolution to the conflict that has disrupted shipments via the crucial Strait of Hormuz and fuelled inflation that could hurt economic growth.

Both sides have held talks but failed to reach an agreement to end the war.

Investors have been closely monitoring the U.S.-Iran talks for signs of a possible reopening of the essential Gulf waterway, which accounted for roughly 9% of global aluminium supply before the war.

A stronger dollar =USD also weighed on base metals complex by making it less affordable for investors using other currencies.

The war in Iran has pushed analysts to raise their aluminium price forecasts following supply disruptions, but prices are expected to ease below current elevated levels in the coming months, a Reuters poll showed.

The steady destocking in LME warehouses created a contrast with a persistent inventory pile-up on the Shanghai exchange, limiting the convergence of price differences at home and abroad, analysts at Everbright Futures said in a note.

For other SHFE metals, copper SCFcv1 shed 0.66%, lead SPBcv1 dipped 0.27%, tin SSNcv1 slipped 2.01%, zinc SZNcv1 fell 2.42% while nickel SNIcv1 added 0.74%.

Among other LME metals, copper CMCU3 eased 0.14%, lead CMPB3 dipped 0.2%, tin CMSN3 dropped 0.3%, zinc CMZN3 declined 0.75% while nickel CMNI3 added 1.04%.

($1 = 6.8343 Chinese yuan)