METALS-Copper ticks down as fresh US strikes on Iran weigh on sentiment

Updates prices as of 0746 GMT

- Copper prices edged lower on Tuesday, pressured by higher oil prices after the latest U.S. strikes on Iran dampened hopes of a resolution to the Middle East conflict, driving concerns over the global economic outlook.

Three-month copper on the London Metal Exchange CMCU3 was down 0.2% at $13,637.50 a metric ton by 0746 GMT.

The most-traded copper contract SCFcv1 on the Shanghai Futures Exchange slipped 0.4% to 104,960 yuan ($15,447.22) a ton.

U.S. Secretary of State Marco Rubio said on Tuesday negotiating a deal with Iran could "take a few days," quashing hopes for an imminent end to the conflict a day after U.S. forces conducted what Washington called defensive strikes in southern Iran.

The strikes came as Iran's top negotiator and its foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the U.S. to end the three-month-old war.

Brent crude oil prices rose after the U.S. military action. Higher energy prices have dimmed the outlook for metals due to the risk that an energy shock could squeeze global growth and manufacturing.

"Base metals are likely to remain range-bound and sensitive to headlines in the near term," said Tim Waterer, chief market analyst at KCM Trade.

"Should a peace deal emerge that meaningfully lowers oil and drags the dollar lower with it, that would ease inflation concerns and significantly boost the attractiveness of base metals."

Elsewhere on the LME, aluminium CMAL3 gained 0.8% to a more-than-one-week high, zinc CMZN3 rose 1.4%, lead CMPB3 was up 0.4%, nickel CMNI3 lost 1.3% and tin CMSN3 climbed 0.1%.

Among other SHFE metals, aluminium SAFcv1 ticked 0.5% higher, zinc SZNcv1 was up 1.2%, lead SPBcv1 held steady, nickel SNIcv1 lost 1.2% and tin SSNcv1 added 0.7%.


($1 = 6.7862 Chinese yuan)