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METALS-Aluminium hits seven-month low on fears recession would hit demand

       * Nickel hits three-month low
    * Tin slides to weakest in nearly a year
    * GRAPHIC-2022 asset returns:

 (Updates prices, adds fresh lows)
    By Eric Onstad
    LONDON, June 14 (Reuters) - Aluminium prices deepened losses
and hit the weakest in seven months on Tuesday as investors
worried that renewed lockdowns in top consumer China and a
potential global recession could slash demand for metals.
    Three-month aluminium         on the London Metal Exchange
fell 2.2% to $2,570 a tonne by 1615 GMT after touching the
weakest since Nov. 10 and sliding 1.9% on Monday.
    "There's a general lack of risk appetite right now and
metals are in the firing line because of the recessionary risks
to demand," said Ole Hansen, head of commodity strategy at Saxo
Bank in Copenhagen.
    "There's also some nervous trading ahead of tomorrow's FOMC
    Eroding inflation data and fast-changing views in financial
markets have opened the door to a larger-than-expected
three-quarter-percentage point interest rate increase when
Federal Reserve officials meet this week.
    Meanwhile, concern about demand in top metals consumer China
has been rekindled due to fresh COVID-19 lockdowns.
    Authorities in China's capital warned on Tuesday a surge in
COVID-19 cases linked to a 24-hour bar was critical and the city
of 22 million was in a "race against time" to get to grips with
its most serious outbreak since the pandemic began.

    Losses in some metals, however, were cushioned by falling
inventory levels and tight supply, Hansen added.
    "Inventory levels held by exchanges in London and Shanghai
are still on the weak side so how do you square that with prices
coming down in anticipation of lower demand? That's the
conundrum the market has to deal with."
    LME copper         dipped 0.8% to $9,218 a tonne, while U.S.
Comex futures         dropped 1.1% to $4.164 a lb.
    LME copper has shed 15% since touching a record peak of
$10,845 in early March.

    * The Yangshan copper premium has rebounded
slightly to $57.50 a tonne, up from $49 last week, but still
well down on its recent peak of $78 a month ago.
    * Weighing on the market, the dollar index        bounced to
a fresh two-decade high, making greenback-denominated metals
more expensive for buyers using other currencies.
    * LME zinc         eased 0.4% to $3,598.50 a tonne, lead
        slipped 0.6% to $2,086, nickel         fell 2.6% to a
three-month low of $25,250 and tin         slid 5.5% to $31,100,
the weakest in nearly a year.

      ($1 = 6.7345 Chinese yuan)

 (Reporting by Eric Onstad; Additional reporting by Brijesh
Patel in Bengaluru; Editing by Kirsten Donovan, Aditya Soni,
Alexandra Hudson)

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