(Updates prices as of 0746 GMT)
April 9 (Reuters) - London copper fell on Thursday from
a three-week high the day before, as renewed Middle East
tensions cast doubt on whether the U.S.-Iran ceasefire would
hold, lifting oil prices and reviving concerns over the global
economic growth outlook.
Benchmark three-month copper on the London Metal
Exchange was down 0.9% at $12,591 a metric ton, as of 0746 GMT,
after hitting its highest level since March 18 on Wednesday and
marking its best one-day-gain since early February.
The most-active copper contract on the Shanghai
Futures Exchange gained 0.6% to 97,810 yuan ($14,307.55) a ton,
its highest since March 18.
U.S. President Donald Trump vowed to retain military assets
in the Middle East until a peace deal with Iran is reached and
warned of a major escalation in fighting if it failed to comply.
Oil prices rose about 3% on concerns that supply from the
key Middle East producing region may not fully resume.
"We are seeing some natural profit-taking (in copper) after
yesterday's strong rally. This, combined with oil heading higher
today, is applying downward pressure on metal prices," said Tim
Waterer, chief market analyst, KCM Trade.
Higher energy prices have dampened the outlook for metals by
raising concerns that an energy shock could squeeze global
growth and manufacturing.
Further pressuring prices, copper stocks in LME-approved
warehouses on April 8 stood at 385,275 tons, the
highest since March 2018.
However, "resilient demand (for copper) due to the energy
transition and data-centre growth will keep the market
undersupplied by 4-5%, supporting prices," ANZ said in a note.
London aluminium rose 0.1% to $3,456 a ton, while
the most-traded Shanghai contract lost 0.6% to 24,540
yuan a ton.
Elsewhere on the LME, tin fell 1.4%, zinc
lost 0.4%, lead was down 0.4% and nickel fell
0.8%.
Among other SHFE base metals, zinc fell 0.5%, lead
was down 0.1%, tin lost 0.6%, while nickel
held steady.