METALS-Metals rise on weaker dollar, aluminium up on EU plan to ban Russian metal

(Updates prices) SHANGHAI, Jan 16 (Reuters) - Most base metals rose on Thursday as the dollar weakened after soft U.S. core inflation raised hopes that the Federal Reserve could cut interest rates further. The dollar index =USD paused its rally following the release of core consumer price index data. It was last at 109.09 - a 1% retreat from the 26-month high of 110.17 hit on Monday. A weaker dollar makes greenback-priced commodities cheaper for holders of other currencies. Excluding volatile food and energy components, the U.S. core CPI increased 3.2% on an annual basis, compared with an expected 3.3% rise. Traders of interest-rate futures now expect the Fed to cut rates twice by the end of this year, with the first reduction to come in June. Three-month aluminium CMAL3 on the London Metal Exchange (LME) rose 1.0% to $2,627 a metric ton by 0755 GMT, bolstered by the European Commission's plan to ban Russian aluminium. The European Commission intends to propose a ban on imports of Russian primary aluminium in its 16th package of sanctions against Russia over its invasion of Ukraine, European Union diplomats said on Tuesday. "Russian shipments of the metal to Europe have already fallen due to widespread self-sanctioning by manufacturers. Any further restrictions would likely see only a limited impact on the market," ANZ Research said in a note. LME copper CMCU3 rose 0.7% to $9,230, tin CMSN3 was up 0.9% to $29,850, nickel CMNI3 was down 0.4% to $15,790, lead CMPB3 added 0.9% to $1,951, while zinc CMZN3 gained 0.2% to $2,868. The most-active copper contract on the SHFE SCFcv1 was up 1.1% at 76,080 yuan ($10,353.95) a ton. SHFE aluminium SAFcv1 added 0.7% to 20,300 yuan a ton, nickel SNIcv1 was up 0.9% to 128,600 yuan, zinc SZNcv1 fell 0.4% to 23,790 yuan, lead SPBcv1 gained 0.4% to 16,645 yuan and tin SSNcv1 added 0.8% to 248,010 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.3315 Chinese yuan) (Reporting by Violet Li and Mei Mei Chu; Editing by Subhranshu Sahu and Mrigank Dhaniwala) (([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 ))