METALS-London copper heads for steepest weekly loss in a year on fears of oil-fuelled inflation

March 20 (Reuters) - Copper was set to log its steepest weekly loss in nearly a year on Friday, as the Middle East war stoked fears of higher inflation and slower global growth amid surging oil prices.

The benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.09% at $12,157 a metric ton as of 0700 GMT but was headed for a near 5% weekly loss, the biggest since April 2025.

The most active copper contract SCFcv1 on the Shanghai Futures Exchange ended daytime trading 1.12% lower at 94,780 yuan ($13,751.18), down 6.05% for the week.

Multiple central banks held rates this week and warned that the jump in oil prices could rekindle inflation and weigh on growth, prompting investors to push back rate cut bets and, in some cases, revive expectations of renewed tightening.

Brent futures LCOc1 eased on Friday but were still above $105 a barrel, rising more than 49% since the war started on February 28.

The conflict is fuelling recession fears, leading to copper's break below a key support level, Chinese broker Galaxy Futures said.

Aluminium also felt the pinch, with the Gulf accounting for 8% of the world's output.

Shanghai's most-active aluminium contract SAFcv1 declined 1.6% to 24,020 yuan a ton, and is set to end the week 5.59% lower.

London benchmark aluminium CMAL3 was up 0.14% at $3,256 a ton on Friday but is set to lose 5% this week.

Aluminium Bahrain ALBH.BH said on Thursday that it is exporting metal via the Saudi port of Jeddah as the Strait of Hormuz remains effectively shut.

Elsewhere on SHFE, zinc SZNcv1 nudged 0.02% higher, lead SPBcv1 dropped 1.60%, nickel SNIcv1 gained 0.28% and tin SSNcv1 lost 3.25%.

Among other LME metals, zinc CMZN3 gained 0.14%, lead CMPB3 dropped 0.32%, nickel CMNI3 shed 0.32% and tin CMSN3 declined 1.19%.

($1 = 6.8925 Chinese yuan renminbi)