METALS-Base metals up as Fed rate cut outlook lifts risk appetite

(Updates prices as of 0824 GMT) BEIJING, March 21 (Reuters) - Prices of most base metals climbed on Thursday, lifted by enhanced risk appetite after the U.S. central bank indicated it would stick with its interest rate cut plans for this year. Three-month copper on the London Metal Exchange (LME) CMCU3 was up 1.2% to $9,031.50 per metric ton by 0824 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 climbed 0.9% to 73,240 yuan ($10,173.21) per ton. The Federal Reserve held interest rates steady on Wednesday but still saw rates falling at least three-quarters of a percentage point later this year despite recent high inflation readings. That brightened the demand outlook for industrial metals. The dollar index =USD drifted lower on Thursday, making it cheaper to buy the greenback-priced commodity. For copper, there are also growing expectations of lower output as smelters enter a maintenance period amid loss-making conditions caused by a fall in processing fees, analysts at Guotai Junan Futures said. But copper price gains could be capped by high stocks in China, and as high prices hit demand, they added. Yangshan copper premium SMM-CUYP-CN , an indicator of China's demand for copper import, slid to $46.50 per ton on Wednesday, the lowest since August. LME aluminium CMAL3 was up 1.7% to $2,312 a ton, nickel CMNI3 increased 0.8% to $17,625, zinc CMZN3 rose 2% to $2,559, lead CMPB3 gained 0.3% to $2,070.50, and tin CMSN3 increased 2% to $27,775. Inventories of lead in warehouses registered with the London Metal Exchange surged 34% to their highest level in 11 years on Wednesday. SHFE lead SPBcv1 eased 0.2% to 16,230 yuan a ton, aluminium SAFcv1 climbed 1.2% to 19,485 yuan, nickel SNIcv1 added 0.9% to 137,980 yuan, zinc SZNcv1 rose 1.6% to 21,525 yuan and tin SSNcv1 was up 1.8% to 228,830 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.1993 Chinese yuan renminbi) (Reporting by Siyi Liu and Mei Mei Chu; Editing by Mrigank Dhaniwala and Sonia Cheema) (([email protected];)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))