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METALS-Aluminium buoyed by low stocks, China data; Fed verdict in focus

    (Adds comments, details, updates prices)
    By Brijesh Patel
    June 15 (Reuters) - Aluminium prices rose on Wednesday from
a seven-month low, supported by dwindling inventories and strong
industrial output data from China, while traders watched to see
how aggressively the U.S. central bank would hike rates.
    Three-month aluminium on the London Metal Exchange
gained 0.4% to $2,580 a tonne, as of 0446 GMT, after hitting its
lowest since Nov. 10 on Tuesday.
    The most-traded July aluminium contract in Shanghai
was up 0.4% at 20,025 yuan ($2,978.54) a tonne by the midday
break.
    "The stronger China data caught the market by surprise and
while certainly not a blockbuster, the industrial production
beat suggests China has become very agile at keeping the export
engines revving despite mobility restrictions," said Stephen
Innes, managing partner at SPI Asset Management.
    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 monthly production of aluminium reached a record
high last month.
    China's central bank kept its medium-term policy rate
unchanged for the fifth straight month.

    INVENTORIES: 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.
    U.S. FED: Investors have dramatically raised their bets that
the Fed will raise interest rates by 75 basis points (bps)
rather than 50 bps on Wednesday.
    "The Fed can't do anything about soaring commodities due to
the war but what it can do is impact demand via higher interest
rates," Innes said.
    Russia's invasion of Ukraine has seen oil prices rise more
than 50% since January.
    DOLLAR: The dollar        held near its overnight 20-year
peak.
    COPPER: 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.
    OTHER METALS: LME copper         was up 0.5% at $9,272 a
tonne, zinc         rose 0.8% to $3,625.50, lead         added
1.3% to $2,103, and tin         eased 0.3% to $31,000.
    Shanghai copper          was down 0.6%, zinc          added
0.4%, nickel          fell 1.5%, lead          edged 0.1% lower,
and tin          rose 1%.


($1 = 6.7231 Chinese yuan)

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



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