Most base metals rise ahead of Fed rate decision
By Violet Li and Mei Mei Chu
SHANGHAI, Dec 18 (Reuters) -Prices of most base metals rose on Wednesday, ahead of the U.S. Federal Reserve's interest rate decision, while lead gained on tighter supply in China.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.3% at $9,012 per metric ton, as of 0137 GMT.
The most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.5% to 74,180 yuan ($10,186.20)a ton.
The U.S. dollar remained steady against major currencies as investors awaited the Fed'sdecision on a potential hawkish rate cut ahead of other central bank meetings this week.
It is a near giventhat the U.S. central bank will cut rates by another 25 basis points at its last meeting of 2024.
A Fed rate cut typically lowers borrowing costs, which can boost economic activity and increase demand for metals, potentially driving up their prices.
SHFE lead SPBcv1 advanced 1.3% to 17,735 yuan and LME lead CMPB3 added 0.6% to $1,997 on supply tightness.
The recent frequent smog alerts caused secondary lead smelters that produce recycled lead in China'sAnhui, Shandong and other areas to halt production, significantly tightening supply, Shanghai Metals Market noted.
Meanwhile, as the year ends, large lead-acid battery producers are ramping up production in China, increasing the operating rate of lead-acid batteries, the note added.
Lead is mainly used to produce lead-acid batteries.
LME aluminium CMAL3 rose 0.1% at $2,545 a ton, tin CMSN3 gained 0.5% to $29,190, nickel CMNI3 added 0.1% to $15,520, while zinc CMZN3 was relatively unchanged at $3,035.5.
SHFE aluminium SAFcv1 slipped 0.2% to 19,990 yuan a ton, tin SSNcv1 eased 0.1% at 246,67 yuan, nickel SNIcv1 slid 1.5% to 123,900 yuan and zinc SZNcv1 shed 0.7% to 25,465 yuan.
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Reporting by Violet Li and Mei Mei Chu; Editing by Sumana Nandy
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