(Updates prices) LONDON, June 29 (Reuters) - Copper prices held near 16-monthlows on Wednesday as investors weighed the risk that rapidinterest rate rises will reduce global economic growth andmetals demand.
Industrial metals have tumbled alongside stock markets ascentral bankers stepped up talk of action to containdecades-high inflation. Benchmark copper on the London Metal Exchange (LME)was up 0.6% at $8,418 a tonne at 1559 GMT, near last week's lowof $8,122.50 and down from a record high of $10,845 in March.
"It's too early to say if we're out of the woods," said SaxoBank analyst Ole Hansen.
"It depends on the level to which we see a deterioration ofthe view on global growth and whether China can find a way outof its COVID lockdowns."
NICKEL/POTANIN: LME nickel prices briefly shot upafter Britain sanctioned Vladimir Potanin, who owns 36% of top producer Norilsk Nickel . A Norilsk executive said its lawyers were studying themeasures against Potanin but that "we as a company are not undersanctions." Analysts said Russia's nickel exports would likelybe little affected. By 1559 GMT, nickel was up 2.6% at $23,750 a tonne.
INTEREST RATES: Weak economic data in Europe and the UnitedStates has not prevented central bankers from doubling down onhawkish rhetoric. CHINA FACTORIES: A Reuters poll showed that China's factoryactivity likely expanded in June for the first time in fourmonths. CHINA PROPERTY: In a positive sign for metals demand,homebuilder China Vanke Co said the troubled Chineseproperty market has bottomed in the short term. CHINA GROWTH: S&P cut its China GDP growth forecast thisyear to 3.3%. POSITIONING: Speculative investors are turning bearish oncopper. FUNDAMENTALS: Output disruptions, supply dislocations andrelatively thin exchange inventories support metal prices,Standard Chartered analysts said in a note. ALUMINIUM: Some Japanese aluminium buyers have agreed to paya premium of $148 a tonne over the benchmark price forJuly-September shipments, down 14% from the current quarter,sources said. METALS PRICES: LME aluminium was down 0.9% at $2,468a tonne, zinc rose 0.3% to $3,343, lead slipped2.2% to $1,928 and tin was 0.6% lower at $26,650.
(Reporting by Peter Hobson Additional reporting by Brijesh Patel in Bengaluru; Editing byAlexandra Hudson, Elaine Hardcastle)
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