METALS-Copper, aluminium gain on China recovery hopes, Fed rate hike

    (Adds comments, details, updates prices)
    By Brijesh Patel
    June 16 (Reuters) - Prices of copper and aluminium rose on
Thursday, supported by hopes of recovery in top metals consumer
China and a 75 basis point interest rate hike by the U.S.
Federal Reserve in a widely expected move.
    Three-month aluminium on the London Metal Exchange
gained 1.6% to $2,633.50 a tonne, as of 0413 GMT, while copper
        rose 0.6% to $9,287 a tonne.
    The most-traded July aluminium contract in Shanghai
was up 1% at 20,105 yuan ($3,000.66) a tonne by the midday
break.
    "Markets got worked up about inflation and pace of rate
hikes and when it happens, the anxiety fades and its helping the
metals," a Singapore-based metals trader said.
    The U.S. central bank on Wednesday approved its biggest
interest rate hike since 1994, lifting the target federal funds
rate by 75 basis points to a range of between 1.5% and 1.75%.

    China's economy showed signs of recovery in May after
slumping in the prior month as industrial production rose
unexpectedly.
    China's monthly production of aluminium reached a record
high in May following easing in power consumption curbs and as
COVID-19-induced lockdowns had little impact on output.

    "Factories numbers in China will pick up as cities reopen
but prices are expected to be range-bound due to weak demand to
come in the months ahead."

    SUPPORT: China's state planner said it would expand the
scope of use of funds raised by local government special bonds
and ensure reasonable economic growth in the second quarter.

    DOLLAR: The dollar retreated from a 20-year high, making
greenback-priced commodities cheaper for buyers using other
currencies.
    INVENTORIES: Aluminium stocks in
LME-registered warehouses fell to a fresh 21-year low of 416,125
tonnes, compared with nearly 2 million tonnes in March 2021.
    At 121,525 tonnes, copper stocks in LME-registered
warehouses have dropped more than 30% since the middle of May.

    OTHER METALS: LME zinc         rose 2.1% to $3,720 a tonne,
lead         gained 1.1% to $2,100.50, and tin         climbed
0.4% to $32,585.
    Shanghai copper          was flat, zinc          gained
1.1%, nickel          gained 1.2%, lead          edged 0.4%
higher, and tin          jumped 6.3%.


($1 = 6.7002 Chinese yuan renminbi)

 (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi
Aich)