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METALS-London aluminium hovers near 6-month low on recession fears

    (Recasts, adds comments, details, updates prices)
    By Brijesh Patel
    June 14 (Reuters) - London aluminium prices hovered on
Tuesday near six-month lows, while prices in China's commercial
hub of Shanghai fell more than 1% on fears of potential
lockdowns, as prospects of higher interest rates globally
weighed on investor sentiment.
    The most-traded July aluminium contract in Shanghai
ended morning trading down 1.7% at 19,875 yuan ($2,951.22) a
tonne, its lowest since May 11.
    Three-month aluminium on the London Metal Exchange
was flat at $2,629 a tonne as of 0448 GMT, after hitting its
lowest since Dec. 15 on Monday.
    "Concerns of weaker economic growth as central banks hike
rates weighed on sentiment in the base metals market," commodity
strategists at ANZ said in a note.
    "Following the easing of some restrictions in recent weeks,
the market was reminded of the rollercoaster ride it is on when
authorities in Shanghai sealed a district for mass testing.
These little outbreaks of COVID-19 could hinder the economic
recovery and weigh on demand."
    Beijing is testing millions to stem the spread from a
cluster infection, with China's vice premier saying COVID-19
prevention and control needs to be strengthened. Shanghai is
only just emerging from a crippling two-month-long lockdown.

    Rising expectations that the U.S. Federal Reserve will this
week raise interest rates by more than previously forecast
unsettled investors.

    DOLLAR: Offering some respite, the dollar        fell 0.2%
against its rivals, making greenback-denominated metals less
expensive for buyers using other currencies.
    * Lead surpluses in top consumer China will cancel out
shortages of the battery material in Europe and the United
States, effectively leaving the global market in balance this
year.
    * Ghana is on a roadshow to find a strategic partner to
rebuild state-owned Volta Aluminium Co's aluminium smelter.

    OTHER METALS: LME copper         was up 0.3% at $9,318 a
tonne, zinc         rose 0.8% to $3,642, lead         added 0.5%
to $2,107.50, and tin         fell 0.7% to $32,670.
    Shanghai copper          was down 0.8%, zinc
slipped 0.6%, nickel          fell about 5%, lead          edged
0.3% lower, and tin          dropped 5.1%.

 ($1 = 6.7345 Chinese yuan renminbi)

 (Reporting by Brijesh Patel in Bengaluru; Editing by Sherry
Jacob-Phillips and Shounak Dasgupta)



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