Dec 14 (Reuters) - Prices of most base metals rose on Thursday on projections that the U.S. interest rate hike cycle has come to an end, with cuts potentially starting in 2024.
Three-month copper on the London Metal Exchange rose 1.1% to $8,420.50 per metric ton by 0243 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange advanced 0.2% to 68,050 yuan ($9,536.15) a ton.
U.S. central bank chief Jerome Powell said the historic tightening of monetary policy is likely over as inflation falls faster than expected, with a discussion of cuts in borrowing costs coming "into view."
An interest rate cut could mean cheaper funding to help businesses grow and buy more metals. It also usually leads to a weaker dollar, which makes greenback-priced metals cheaper to holders of other currencies.
Also supporting copper prices has been mine closures and disruptions that have rapidly changed the landscape for copper supplies and prompted analysts to lower their forecasts for surpluses.
However, capping the rally in metals prices was top consumer China's lack of announcement this week on large scale stimulus measures to prop up its economy.
LME aluminium increased 1.1% to $2,164 a ton, nickel was up 0.8% at $16,600, zinc climbed 1.4% to $2,461, lead rose 1.4% to $2,063, and tin advanced 0.6% to $24,835.
SHFE aluminium increased 1.2% to 18,615 yuan a ton, nickel advanced 0.3% to 131,500 yuan, while zinc lost 0.1% to 20,775 yuan, lead eased 0.1% to 15,540 yuan, while tin was almost flat at 207,600 yuan.
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DATA/EVENTS (GMT)
1200 UK BOE Bank Rate Dec
1315 EU ECB Refinancing, Deposit Rates Dec
1330 US Import Prices YY Nov
1330 US Initial Jobless Clm Weekly
1330 US Retail Sales MM Nov
($1 = 7.1360 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Nivedita Bhattacharjee)
