* Global zinc market in 27,000 T deficit in Jan -ILZSG
* Global lead market deficit deepens to 15,000 T in Jan
* Coming up: U.S. housing starts, building permits Feb at
(Adds comment, detail; updates prices)
By Melanie Burton
MELBOURNE, March 16 London copper shrugged off a
hike in near-term interest rates in China to hit its highest in
more than a week on Thursday, with the dollar dropping after the
U.S. raised rates but showed no signs of speeding up its pace of
China's central bank raised short-term interest rates on
Thursday in what economists said was a bid to stave off capital
outflows and keep the yuan currency stable after the Fed's rate
Higher costs of capital in the world's biggest user of
metals could dampen industrial activity, but the market remained
focused on the weaker dollar.
"The Fed's rate hike is within market expectation but
...(its commentary) dampened the expectations that Fed may raise
rates for more than three times for 2017," Argonaut said in a
"This weakened the dollar and supported commodity price
increases. All metals increased, with copper prices (supported)
as supply disruptions at mines in Chile, Peru and Indonesia
continue to add to concerns over supply deficits."
Three-month copper on the London Metal Exchange had
climbed 1 percent to $5,924.50 by 0706 GMT, extending gains from
the previous session. Prices earlier touched their strongest
since March 6 at $5,929.50 a tonne.
Shanghai Futures Exchange copper rose 1.5 percent
to 48,040 yuan ($6,969) a tonne.
Wall Street's top banks see two additional U.S. interest
rate rises this year and most expect at least three more in
2018, a Reuters poll showed on Wednesday.
Meanwhile, Indian billionaire Anil Agarwal said on Wednesday
he would buy a stake of up to 2 billion pounds ($2.46 billion)
in Anglo American, but had no intention of trying to
take control of the global miner.
In other metals, ShFE zinc jumped 3.6 percent,
having ridden on the coattails of a steel rally driven by
China's infrastructure push, and signs of a deepening deficit.
The global zinc market recorded a deficit of 27,000 tonnes in
January after clocking up a revised surplus of 8,800 tonnes in
December, data from the Lisbon-based International Lead and Zinc
Study Group (ILZSG) showed.
ShFE lead also ended up 2.7 pct. The global lead
market deficit more than doubled to 15,000 tonnes in January
from a shortfall of 7,000 tonnes in December, according to
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 = 6.8935 Chinese yuan)
(Reporting by Melanie Burton; Editing by Joseph Radford and