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METALS-London copper holds below three-year top as dollar rebounds

(Updates prices)

MELBOURNE, Aug 30 (Reuters) - London copper was treading water a whisker from its highest level in three years on Wednesday as a dollar rebound slowed a rally in prices based on China’s robust housing and manufacturing growth.

“After yesterday’s surge upwards in prices so far today the markets are far more subdued with low volumes and small overall changes,” Kingdom Futures said in a report.

“The balance of the week could well become interesting as we approach month end and there can be little doubt that the new investment money that has fuelled recent price rises ...will want good high prices for month end valuations.”


* LME COPPER: London Metal Exchange copper rose by 0.2 percent to $6,805 a tonne by 0729 GMT, adding to a 1.9 percent gain from the previous session when prices hit $6,843.50 a tonne, the highest since September 2014.

* SHFE COPPER: Shanghai Futures Exchange copper traded close to its highest since February 2013 before closing flat at 52,700 yuan ($8,000) a tonne.

* COPPER OUTLOOK: “I’m a little skeptical (of copper prices) in the short-term,” the chairman of Chilean state-owned copper company Codelco said on Tuesday. “It’s true that all of the fundamentals are good in the medium- and long-term ... but I would be very cautious.”

* ALUMINIUM: LME aluminium stocks have climbed by around 40,000 tonnes since mid-month, as traders deliver metal rather than hold it given a blow-out in spreads. The premium to roll aluminium for a day, seen in Tomorrow-Next Day (Tom-Next) spreads, surged to $10 for four of the past five sessions. CMALT-0 The premium for cash against three months prices however has sharply fallen from $11 to a $10 discount, suggesting large inflows may be on their way.

* CHINA ECONOMY: China can meet its 2017 economic growth targets but may struggle to meet its investment and foreign investment goals, the country’s state planning head told parliament.

* CHINA FACTORIES: China’s factories likely posted another solid month of growth in August, suggesting the world’s second-largest economy is still growing at a healthy clip despite rising financing costs and a cooling housing market, a Reuters poll showed. Official manufacturing data is due on Thursday.

* U.S. ECONOMY: U.S consumer confidence surged to a five-month high in August while house prices rose further in June, suggesting a recent acceleration in consumer spending was likely to be sustained.

* MARKETS: The dollar rebounded from a 2-1/2-year low on Wednesday, and Asian stocks took their cue from Wall Street’s higher close, as concerns about North Korea’s firing of a missile over Japan ebbed.

* COMING UP: Euro zone Business climate Aug at 0900 GMT

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Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.5874 Chinese yuan)

Reporting by Melanie Burton; Editing by Richard Pullin and Subhranshu Sahu