Metals-Industrial metals fall on stronger dollar

Benchmark LME aluminium CMAL3 fell 1.19% and SHFE SAFcv1 fell 1.05%, the second consecutive decline for the light metal that earlier enjoyed a seven-session rally.

Improving supply prospects from the Middle East, a major global aluminium supplier, and the expected return of some war-damaged smelting capacity helped relieve supply concerns. This despite an impasse in peace negotiations between the U.S. and Iran, which threatens to limit traffic through the Strait of Hormuz.

"There is more uncertainty about a peace deal, although smelters in the Gulf have been shipping material out through Saudi Arabia and Oman," Wilson said.

Among LME metals zinc CMZN3 lost 1.38%, lead CMPB3 lost 0.6%, nickel CMNI3 lost 0.96% and tin CMSN3 lost 0.72%.

Among SHFE metals zinc SZNcv1 lost 0.51%, nickel SNIcv1 lost 0.41% and tin SSNcv1 lost 0.73%.

SHFE lead SPBcv1 was the sole winner among base metals, adding 0.31%.

Copper and the broader industrial metals complex slipped on Thursday as the dollar strengthened amid strong demand for U.S. Treasuries after the release of benign U.S. consumer inflation data for July.

Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.83% at $14,015 a metric ton by 0720 GMT. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.7% to 107,410 yuan a ton.

Demand for U.S. Treasuries was solid after the release of mild U.S. inflation data for July, supporting the dollar and weighing on greenback-denominated commodities by making them more expensive for buyers using other currencies.

Copper remained supported by inventory outflows from the LME amid uncertainty about potential U.S. tariffs on imports of refined copper.