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METALS-Aluminium rises on low stocks, China data; Fed decision in focus

       June 15 (Reuters) - Aluminium prices rose from a seven-month
low on Wednesday, supported by dwindling inventories and strong
industrial output data from China, while traders waited to see
how aggressive the U.S. Federal Reserve would be on rate hikes.

    FUNDAMENTALS
    * Three-month aluminium on the London Metal Exchange
gained 1.1% to $2,598.50 a tonne, as of 0220 GMT, after hitting
its lowest since Nov. 10 on Tuesday.
    * The most-traded July aluminium contract in Shanghai
         was up 0.6% at 20,065 yuan ($2,983.64) a tonne.
    * Aluminium stocks in LME-registered
warehouses were at a 21-year low of 420,675 tonnes, compared
with nearly 2 million tonnes in March 2021.
    * Stocks in warehouses monitored by the
Shanghai Futures Exchange have dropped more than 20% since the
middle of March to 269,583 tonnes.
    * China's industrial output rose 0.7% in May from a year
earlier, picking up from a 2.9% decline in April, official data
showed. China's production of aluminium rose 3.1% to 3.42
million tonnes in May versus a year earlier.

    * Meanwhile, China's central bank kept its medium-term
policy rate unchanged for the fifth straight month.
    * Investors have dramatically raised their bets that the Fed
will raise interest rates by 75 basis points (bps) rather than
50 bps on Wednesday, a swing in expectations which has fuelled a
violent sell-off across world markets.
    * The dollar        held near its overnight 20-year peak.

    * Workers at Chilean state-owned Codelco, the world's
largest copper producer, threatened on Tuesday to go on a
company-wide strike due to a lack of investment at the mining
firm's troubled Ventanas smelter and refinery.

    MARKETS NEWS
    * Asian markets were in a pensive mood on Wednesday as
shell-shocked investors waited to see just how aggressive the
Federal Reserve would be on rates, with many fearing drastic
action would risk tipping the world into recession.

    DATA/EVENTS (GMT)
    0645  France  CPI (EU Norm) Final MM, YY  May
    1100  EU      Reserve Assets Total        May
    1230  US      Retail Sales MM             May
    1800  US      Federal Open Market Committee announces its
decision on interest rates followed by statement


    PRICES
    Three month LME copper
    Most active ShFE copper
    Three month LME aluminium
    Most active ShFE aluminium
    Three month LME zinc
    Most active ShFE zinc
    Three month LME lead
    Most active ShFE lead
    Three month LME nickel
    Most active ShFE nickel
    Three month LME tin
    Most active ShFE tin


($1 = 6.7250 Chinese yuan)

 (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu)



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