(Adds background of strong demand in China and SHFE copper

stocks in paragraph 9-10; updates prices by Asian market close)

April 24 (Reuters) - Copper slipped on Friday amid

lingering uncertainty over Middle East peace talks, a firmer

dollar, and expectations of a global surplus in 2026.

The benchmark three-month copper on the London Metal

Exchange dropped 0.91% to $13,233.50 a metric ton as of 0735

GMT, on track to end the week down 0.83%.

The most-active copper contract on the Shanghai

Futures Exchange sank 0.65% to 102,460 yuan ($14,988.52) a ton,

ending the week down 0.31%.

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

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 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.

Helping to limit the downside was still-strong demand in top

consumer China, as evidenced by continued outflows in copper

stocks monitored by SHFE.

SHFE copper stocks continued to decline, down 16.3% week on week

to 201,373 tons, according to the exchange's weekly stock report

on Friday. It has declined more than 50% since peaking on March

13.

Elsewhere on the LME, aluminium dropped 0.69%, zinc

ticked 0.09% lower, lead gained 0.38%, nickel

was little changed and tin lost 1.01%.

Among other SHFE metals, aluminium dropped 0.78%,

zinc dipped 0.51%, lead nudged 0.06% lower,

nickel surged 1.82% and tin declined 0.88%.

($1 = 6.8359 Chinese yuan renminbi)