Copper, industrial metals fall as Middle East war weighs on demand outlook

LME nickel CMNI3 lost 2.26% while the SHFE price SNIcv1 fell 1.57%.

Nickel's loss wiped out much of the previous day's rally, when prices increased on concerns related to raw material supply.

Among other LME metals, aluminium CMAL3 lost 0.8%, zinc CMZN3 fell 1.36%, lead CMPB3 dipped 0.27% and tin CMSN3 dropped 1.76%.

On SHFE, aluminium SAFcv1 ticked 0.09% higher, zinc SZNcv1 lost 0.73%, lead SPBcv1 rose 1.8% and tin SSNcv1 lost 1.49%.

Copper and most of the wider base metal complex fell on Friday, as deteriorating risk sentiment from the Middle East war spurred inflation concerns and cast a shadow over the demand outlook.

Benchmark three-month copper CMCU3 on the London Metal Exchange lost 1.01% to $13,461 a metric ton by 0715 GMT. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.73% to 103,550 yuan ($15,284.13) a ton.

Copper, nicknamed "Dr Copper" due to its use as a bellwether of global economic health, fluctuated through the week and in London is on track to end the week marginally higher by 0.08%.

The breakdown of peace talks and the escalation of fighting between the U.S. and Iran have disrupted shipments through the Strait of Hormuz. Oil prices rose on Friday, with Brent crude climbing nearly 12% this week. O/R

Despite edging up on Friday, non-yielding gold was set for its biggest weekly loss in six weeks on bets rising inflation could keep rates higher for longer.

Higher interest rates weigh on growth-dependent industrial minerals by dampening economic activity.