December 19, 2018 / 2:16 AM / in a month

METALS-Shanghai base metals slide as Fed decision eyed

    BEIJING, Dec 19 (Reuters) - Shanghai copper hit a
three-month low overnight and led base metals sharply lower on
Wednesday, as investors concerned about global economic growth
waited to see whether the U.S. Federal Reserve would raise
interest rates for a fourth time this year.
    Higher interest rates tend to push commodity prices lower,
because they mean higher borrowing costs, which can reduce
economic activity and consumption.
    
    FUNDAMENTALS
    * SHFE COPPER: The most-traded February copper contract on
the Shanghai Futures Exchange fell by 1.6 percent to
48,220 yuan ($6,994.08) a tonne as of 0201 GMT, having slid as
much as 2 percent overnight to 48,010 yuan, the lowest since
Sept. 18.
    * LME COPPER: Three-month copper on the London Metal
Exchange rose 0.5 percent to $6,002 a tonne as the
dollar index weakened. It also hit a three-month low on
Tuesday and closed 2.5 percent lower.
    * COLUMN: Hedge funds give up on indecisive "Doctor" copper:
Andy Home.
    * SENTIMENT: Investor outlooks have deteriorated to their
most pessimistic in a decade, Bank of America Merrill Lynch's
December investor survey showed on Tuesday.
    * OTHER METALS: Nickel and zinc each lost
more than 1 percent in a broad Shanghai metals sell-off.
    * GLENCORE: Glencore-controlled Katanga Mining Ltd
 is paying more than $22 million to settle Canadian
allegations of inadequate historical disclosures of its finances
and activities in the Democratic Republic of Congo.
    * FREEPORT: Indonesian miner PT Inalum expects to finalise
this week a $3.85 billion deal to take majority control of the
local subsidiary of mining giant Freeport McMoRan Inc
once environmental and other issues are resolved.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS
    * Asian share markets played second fiddle to bonds on
Wednesday as a spectacular fall in the price of oil fanned
speculation the U.S. Federal Reserve might be done with
tightening after its policy meeting later in the day.

    
    DATA/EVENTS AHEAD (GMT)
    1900    U.S. Federal Reserve's Federal Open Market Committee
announces its decision on interest rates
                
    PRICES        
   
 BASE METALS PRICES                        0202 GMT
 Three month LME copper                        6002
 Most active ShFE copper                      48220
 Three month LME aluminium                   1930.5
 Most active ShFE aluminium                   13710
 Three month LME zinc                        2526.5
 Most active ShFE zinc                        20855
 Three month LME lead                        1954.5
 Most active ShFE lead                        18410
 Three month LME nickel                       10815
 Most active ShFE nickel                      89230
 Three month LME tin                              0
 Most active ShFE tin                        145810
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER             LMESHFCUc3       285.2
 LME/SHFE ALUMINIUM          LMESHFALc3    -1631.96
 LME/SHFE ZINC               LMESHFZNc3      170.61
 LME/SHFE LEAD               LMESHFPBc3     1545.21
 LME/SHFE NICKEL             LMESHFNIc3     1678.47
 
($1 = 6.8944 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Sai Sachin Ravikumar)
  
 
 
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