METALS-Shanghai copper gains ahead of Fed rate decision

SHANGHAI, Dec 8 (Reuters) - Shanghai Copper opened the week higher on Monday, bolstered by expectations of an interest rate cut by the U.S. Federal Reserve.

The most-active copper contract on the Shanghai Futures Exchange was up 0.52% at 92,040 yuan ($13,020.78) per metric ton as of 0215 GMT.

In contrast, the benchmark three-month copper on the London Metal Exchange ticked 0.23% lower to $11,593 a ton.

Markets are pricing in a quarter-point U.S. interest rate cut on Wednesday. A Reuters poll of 108 analysts found only 19 voted for no change.

Signs of lower supply helped buoy copper prices in Asia. Deliverable copper in SHFE sheds declined 9.22% by the end of last week, the exchange's weekly stock report showed on Friday - the second consecutive week of declines.

Cancellations were also seen in available, or on warrant copper stocks in LME warehouses last week.

Meanwhile, copper inventories in the U.S. Comex exchange continued to increase after hitting a record high in late November, totalling 436,853 short tons (396,306 metric tons) as of Friday.

Copper's strength is rooted in a structural mismatch between supply and available stocks as a persistent Comex-LME premium has diverted the metal towards the U.S., tightening supply in the rest of the world, analysts at Chinese broker GF said in a note.

Supply concerns are also fuelled by mine disruptions and China's major smelters agreeing to slash output by 10%.

Among other SHFE base metals, aluminium dropped 0.70%, tin tumbled 1.17%, zinc was unchanged, while lead and nickel were little changed.

Among LME metals, aluminium was down 0.33%, nickel dropped 0.50%, tin declined 0.67%, zinc was little changed and lead posted gains of 0.22%.

Monday, December 8 DATA/EVENTS (GMT) 0700 Germany Industrial Output MM, YY SA Oct 0745 France Reserve Assets Total Nov ($1 = 7.0687 Chinese yuan renminbi) (Reporting by Dylan Duan and Lewis Jackson; Editing by Sonia Cheema)