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METALS-Copper slips to 8-1/2-month low on recession fears, firm dollar

       June 20 (Reuters) - London copper prices fell to an
eight-and-a-half month low on Monday, weighed down by a strong
dollar and worries that a potential global recession would dent
demand for metals.

    FUNDAMENTALS
    * Three-month copper on the London Metal Exchange
was down 0.1% at $8,955 a tonne by 0242 GMT, after falling to
its lowest since Oct. 1 in early Asian trade.
    * The most-traded July copper contract in Shanghai
fell 1.6% to 68,460 yuan ($10,233.49) a tonne..
    * China stood pat on its benchmark lending rates for
corporate and household loans, as expected, on Monday, with
global central banks' rate increases making it tough for Beijing
to stimulate a weak domestic economy by lowering rates.

    * The dollar index        hovered near its highest level in
about two decades, making greenback-priced metals more expensive
for overseas buyers.
    * Last week, major central banks, including the U.S. Federal
Reserve, hiked interest rates to contain soaring inflation and
re-ignited worries that they will tip the world into recession.

    * Peru's economic growth will likely be slightly lower this
year, according to a new central bank forecast, following
disruptions to major mining projects in the Andean nation, the
world's second-biggest copper producer.
    * Workers at Chilean state-owned miner Codelco, the world's
largest copper producer, said on Saturday they would start
preparations for a national strike after the firm announced the
closure of the troubled Ventanas smelter.
    * China's aluminium imports in May fell 16.4% from the same
month a year earlier, government data showed on Saturday, amid
high overseas prices and weaker domestic consumption.

    * The LME approved rules on Friday for members to report all
over the counter (OTC) positions, a move taken after
off-exchange trading was partly blamed for a wild spike in
nickel prices in March.
    * China's refined copper production in May rose 4.7%
year-on-year to 0.91 million tonnes, data from the National
Bureau of Statistics showed on Friday.

    MARKETS NEWS
    * Asian shares were unable to sustain a rare rally as Wall
Street futures shed early gains amid worries the U.S. Federal
Reserve would this week underline its commitment to fighting
inflation with whatever rate hikes were needed.


    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 = 6.6898 Chinese yuan)

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



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