METALS-Copper slips to two-week low on stronger dollar, worries about inflation

By Polina Devitt

LONDON, April 28 (Reuters) - Copper prices fell to their two-week low on Tuesday due to a stronger dollar, concerns about global economic growth and fears over inflation fuelled by lingering uncertainty over the Middle East conflict.

Benchmark three-month copper CMCU3 on the London Metal Exchange was 1.3% lower at $13,042 a metric ton by 1600 GMT after hitting $12,937.5, for its lowest since April 13.

With the warring sides of two-month-long Middle East conflict seemingly far apart, oil and other supplies through the critical Strait of Hormuz heavily restricted, the uncertainty weighs on the demand outlook for growth-dependent copper, said Ewa Manthey, commodities strategist at ING.

Attention this week is on comments from monetary policymakers on pricing pressure with the U.S. Federal Reserve expected to hold rates unchanged.

LME aluminium CMAL3 was down 1.1% at $3,539.50 a ton after hitting its one-week low of $3,514. Providing support to the metal are disrupted exports from the Middle East producers, which usually account for 9% of the annual global supply.

Signalling tightness for near-term delivery, the LME cash aluminium contract was last at a premium of $56 a ton over the three-month benchmark CMAL0-3 compared with the pre-war discount of $12.

Nickel CMNI3 rose 2.0% to $19,480. It hit $19,540, highest since June 2024, on Monday due to worries about supplies from top producer Indonesia and disrupted supplies of sulphur needed to make the metal from the Middle East.

Among other LME metals, zinc CMZN3 fell 0.8% to $3,369. Swedish miner Boliden said on Tuesday production at its Garpenberg zinc mine will resume in the second quarter at a low pace.

Lead CMPB3 lost 0.2% to $1,956, while tin CMSN3 was down 0.7% at $48,930.