METALS-Copper steady after soft US inflation data in quiet trade

Dec 18 (Reuters) - Copper struggled to find direction on Thursday as a soft inflation reading in the United States was offset by a slightly firmer dollar, while traders trimmed their exposure ahead of the Christmas holiday.

Benchmark three-month copper on the London Metal Exchange CMCU3 was little changed at $11,721.50 per metric ton as of 1723 GMT, having slipped as much as 0.6% earlier in the session and gained as much as 0.5%.

Trading volumes were thin, with about 14,300 lots changing hands, compared to a 30-day average of almost 22,000.

"There's not really any appetite for fresh positioning at this stage," said Ole Hansen, head of commodity strategy at Saxo Bank. "Books are being reduced. A spike in volatility is always a risk at this time of year."

U.S. consumer prices increased less than expected in the year to November, boosting sentiment, although the data was not as detailed as usual due to the recent government shutdown.

Copper, considered a bellwether for global economic heath, has gained more than 33% in 2025 and hit an all-time peak of $11,952 last week.

"The underlying trend still points toward firm support for this metal as we head into 2026, with the supply side being challenged and demand looking like it will continue to move higher," Hansen added.

The dollar index .DXY nudged up 0.2%, making dollar-denominated metals more expensive for holders of other currencies.

Aluminium CMAL3 gained 0.3% to $2,912.50 per ton, closing in on its recent three-year high of $2,920, after South32 S32.AX said on Tuesday it would shut its Mozal smelter in Mozambique in March. Zinc CMZN3 fell 0.3% to $3,062.50, while lead CMPB3 lost 0.2% to $1,959.

Nickel CMNI3 gained 1.2% to $14,565, and tin CMSN3 added 1.2% to $42,810 after earlier touching $43,345, its highest since April 2022. The metal used in circuit boards has attracted record long positions from fund managers and is up more than 47% in 2025, making it the best performer in the LME complex.