(Updates prices by Asian market close)
April 23 (Reuters) - Copper eased on Thursday from over
seven-week highs, as the U.S. dollar strengthened and risk
appetite came under pressure amid uncertainties surrounding the
Middle East peace talks.
The benchmark three-month copper on the London Metal
Exchange lost 0.23% to $13,292.50 a metric ton as of 0700 GMT,
after pulling 0.36% higher to $13,481.50, the highest since
February 27.
And the most-active copper contract on the Shanghai
Futures Exchange closed daytime trading 0.30% higher to 102,780
yuan ($15,046.33)a ton, paring gains after rising as much as
1.65%.
The earlier gains were thanks to U.S. President Donald Trump
extending a ceasefire with Iran and renewed premium of Comex
copper prices over the LME benchmark.
Thursday's whipsaw move came as the outlook for the
ceasefire and the prospect of an Iran peace deal remained
uncertain.
Iran has yet to confirm the extension, and the U.S.
continued its blockade of Iranian ports, a move that is
considered the main choke point by the Iranian negotiators for
further talks.
Adding to the lack of confidence was Iran's latest move to seize
ships in the Strait of Hormuz, tightening its grip on the key
waterway.
Oil price jumped, with the Brent future climbing
above $100 a barrel. Higher energy prices hurt the outlook for
industrial metals by fanning inflation and growth fears.
Rising concerns about a shortage of sulphuric acid are
pointing to supply constraints in copper.
China's customs data showed its sulphuric acid export to its
biggest overseas acid market, Chile, had dried up in March, even
before China's export ban kicked off in May, leaving the world's
top copper-producing country in a squeeze on the supply of the
chemical used to make around half of its refined metal.
Elsewhere, French miner Eramet is planning to halt
production at its Weda Bay nickel mine in Indonesia next month
as its mining allowance is set to expire, it said on Thursday.
The Shanghai most active nickel contract flipped
into the green, closing up 0.27% to 141,630 yuan a ton, and the
London benchmark declined 0.53% to $18,365.
Among other metals on the LME, aluminium dipped
0.30%, zinc and tin dropped 0.69%, while lead
shed 0.66%.
On SHFE, aluminium dipped 0.12%, zinc
added 0.52%, lead dropped 0.63%, and tin shed
0.23%.
($1 = 6.8309 Chinese yuan renminbi)