METALS-Copper slips as fragile ceasefire outlook, surplus view weigh

April 24 (Reuters) - Copper slipped on Friday as lingering uncertainty over Middle East peace talks, a firmer dollar and expectations of a global surplus in 2026 weighed on sentiment.

The benchmark three-month copper CMCU3 on the London Metal Exchange dropped 0.71% to $13,260.50 a metric ton, on track to end the week down 0.65%.

The most-active copper contract SCFcv1 on the Shanghai Futures Exchange slipped 0.47% to 102,650 yuan ($15,014.77) a ton, set to end the week up 0.44%.

It eased from an over seven-week high earlier this week when hopes for a peace deal between Washington and Tehran briefly lifted risk appetite.

Though the Lebanon-Israel ceasefire has been extended by three weeks, the outlook for U.S.-Iran talks remained fragile, with tensions still simmering after the U.S. seizure of an Iranian vessel and as Iran tightened its grip on the Strait of Hormuz.

That kept energy prices elevated, with Brent futures LCOc1 continuing to advance, keeping inflation concerns alive and limiting investor appetite for growth-sensitive assets such as industrial metals.

A stronger dollar added to the pressure, making greenback-priced commodities more expensive for holders of other currencies. The U.S. dollar index =USD held just below a more than one week high.

Meanwhile, the International Copper Study Group said on Thursday the global refined copper market is expected to flip into surplus in 2026, after it slashed the global demand growth rate, though refined copper output growth is constrained by limited concentrate availability.

Elsewhere, the London benchmark nickel CMNI3 added 0.28% to $18,790 a ton, after advancing to its highest since January 29 at $18,850, and the Shanghai nickel SNIcv1 rose 2.48% to 145,680 yuan after surging to its highest since January 30 at 136,340 yuan.

The surge came after French miner Eramet ERMT.PA said it was planning to halt production at its Weda Bay nickel mine in Indonesia next month as its mining quotas are set to run out.

Elsewhere on the LME, aluminium CMAL3 dropped 0.57%, zinc CMZN3 dipped 0.23%, lead CMPB3 ticked 0.05% lower, and tin CMSN3 lost 0.85%.

Among other SHFE metals, aluminium SAFcv1 dropped 0.52%, zinc SZNcv1 dipped 0.27%, lead SPBcv1 nudged 0.06% lower and tin SSNcv1 declined 0.47%.

Friday, April 23

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($1 = 6.8366 Chinese yuan renminbi)