Copper slips on firm dollar and concern about global economy

London's copper and other industrial metal prices slipped on Thursday, impacted by a robust dollar and concerns over global economic growth amid the ongoing Middle East conflict. The benchmark three-month copper on the London Metal Exchange fell 0.7% to $14,028 a metric ton by 09:20 GMT, sliding 0.2% from the previous day. Copper had surged to a six-month peak a week earlier due to dwindling inventories outside the U.S.

Commodity strategist Nitesh Shah from WisdomTree noted, "It's evident there's tightness in the market. Yet, there are numerous questions about the global economy, and the dollar is putting downward pressure on prices." The ongoing war in the Middle East continues to pose a risk, with Iran and the U.S. yet to reach a consensus on a permanent resolution, potentially leading to weaker-than-anticipated demand.

Meanwhile, the dollar index hit its highest level in nearly two weeks on Thursday, rendering commodities priced in U.S. dollars more costly for foreign buyers. The Shanghai Futures Exchange's most-traded copper contract declined 0.7% to 107,410 yuan per ton, as demand signals weakened in China, the world's largest metals consumer. China's import demand gauge for copper hit its lowest in four weeks at $95 a ton.

Aluminium reached a seven-week high as stock levels dwindled. The Yangshan copper premium, a gauge for demand in China's biggest metals importer, dropped to its lowest in four weeks at $95 a ton. LME aluminium saw a 1.2% decrease to $3,271 a ton, marking the second consecutive drop after a seven-day rally.

Improved supply prospects from the Middle East, a key global aluminum supplier, and the anticipated return of some smelting capacity damaged by the war helped alleviate supply worries. However, lingering uncertainties about a peace deal and the continued shipping of material through Saudi Arabia and Oman proved a persistent concern. Among other metals, LME zinc slipped 0.9% to $3,725 a ton, lead dropped 0.4% to $1,902.50, nickel fell 0.6% to $16,855, and tin declined 0.4% to $55,590.