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METALS-London copper near highest in three weeks on supply worries

(Adds comment, detail; updates prices) MELBOURNE, May 26 (Reuters) - London Metal Exchange copper hovered near its highest in three weeks on Friday, supported by supply concerns after news of further disruption at Indonesia's Grasberg, one of world's biggest copper mines. Freeport McMoRan Inc said on Thursday that mining and milling rates at its Grasberg mine in Papua, Indonesia have been affected by an extended strike, and a "large number" of about 4,000 absentee workers were deemed to have resigned.

"Supply disruptions are an ongoing issue," said analyst Amy Li of National Australia Bank in Melbourne. "It's supportive for prices, but should already be priced in. On the demand side, China is gradually slowing down, and we haven't seen much from the U.S. - they promised a big infrastructure package but no details yet." NAB sees a largely balanced market for 2017 and a small surplus in 2018, with prices averaging $5,720 a tonne.

* LME COPPER: London Metal Exchange copper traded at $5,718 a tonne at 0546 GMT, trimming a small gain from the previous session. Prices on Thursday tipped the highest since May 3 at $5,768.50 and have held in a wider $5,480-$5,800 range since mid-April.

* SHFE COPPER: Shanghai Futures Exchange edged up 0.1 percent to 45,950 yuan ($6,711) a tonne.

* HOLIDAYS: The London Metal Exchange and Shanghai Futures Exchange will be closed on Monday for a long holiday weekend.

* NICKEL: LME nickel was facing a 3-percent weekly loss, after trade data this week showed that the Philippines is ramping up ore exports to China, fueling concerns of oversupply.

* PREMIUMS: China bonded copper premiums jumped $10 to $75, off the year's lows to the highest since March amid drawdowns from Chinese exchange inventories. Premiums for zinc to China on a cost insurance and freight basis rose $5 to $135, the highest since March 2016. <0#BASEBW-SHMET> <0#BASECIF-SHMET>

* MARKETS: Crude prices were on the defensive on Friday after an agreement by OPEC to extend existing supply curbs disappointed investors wagering on larger cuts, prompting a move away from riskier assets and depressing Asian stocks.

* COMING UP: U.S. durable goods for Apr at 0230 GMT PRICES 0545 GMT

Three month LME copper 5718.

5

Most active ShFE copper 45950 Three month LME aluminum 1961.

5

Most active ShFE aluminum 14080 Three month LME zinc 2643 Most active ShFE zinc 22255 Three month LME lead 2101 Most active ShFE lead 15970 Three month LME nickel 9085 Most active ShFE nickel 75430 Three month LME tin 20425 Most active ShFE tin 14512

0

LME/SHFE COPPER LMESHFCUc3 90.91 LME/SHFE ALUMINIUM LMESHFALc3 -1589

.24

LME/SHFE ZINC LMESHFZNc3 426.7

5

LME/SHFE LEAD LMESHFPBc3 -1363

.31

LME/SHFE NICKEL LMESHFNIc3 1446.

37

($1 = 6.8500 Chinese yuan renminbi)

(Reporting by Melanie Burton; Editing by Richard Pullin and Joseph Radford)