METALS-Copper prices fall ahead of U.S. Fed rate decision

* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm2

* Better than expected China data supports metals

* U.S. dollar falls to 7-month low

* Fed rate decision expected at 1800 GMT

(Releads, updates with closing prices) LONDON, June 14 (Reuters) - Copper was pushed lower ahead of an anticipated U.S. Federal Reserve interest rate rise later on Wednesday that is expected to strengthen the dollar, making industrial metals more expensive to holders of other currencies. But solid Chinese economic data limited losses and resulted in higher steel prices that pushed up zinc and lifted nickel from a one-year low. Higher rates interest rates in the United States are likely to lure investment away from emerging economies and boost the dollar, undermining metals prices, ABN AMRO analyst Casper Burgering said.

LME COPPER: London Metal Exchange copper did not

trade at the close but was bid down 0.3 percent at $5,698 a tonne, adding to losses of 1.5 percent over the previous two sessions.

FED: The U.S. Federal Reserve is expected to raise its benchmark interest rate in a statement at 1800 GMT.

DOLLAR: The dollar fell to its lowest since Nov. 9 after weaker-than-expected U.S. inflation and retail sales data.

OIL: Crude prices fell sharply after a large build in U.S. gasoline inventories and a projected rise in non-OPEC production. Lower energy prices tend to pressure metals because they deter investors from buying into commodity basket funds and allow smelters to produce at lower prices.

CHINA ECONOMY: Data showed China's economy generally remained on a solid footing and industrial output beat expectations in May.

CHINA OUTLOOK: But tighter monetary policy, a cooling housing market and slowing investment suggested that Chinese growth would gradually lose momentum. The International Monetary Fund however raised its growth forecast for this year to 6.7 percent.

ELECTRIC CARS: Copper demand from the auto sector will increase nine-fold over the next decade due to growing use of electric vehicles, according to an industry report.

LME NICKEL: A rise in Chinese iron ore and steel prices

helped push stainless steel ingredient nickel up 1.6

percent to $8,940 a tonne, after it fell on Tuesday to $8,680, its lowest since June 2016. Nickel is starting to see interest from fund investors, brokers Marex Spectron said in a note.

LME ZINC: Zinc , used to galvanize steel, closed 0.9

percent higher at $2,494, after falling 2.4 percent in the previous two sessions. The metal is trading near seven-month lows.

CHINA ALUMINIUM: Production rose 4.2 percent year-on-year in May to hit its second-highest level on record. "Attractive margins for smelters should continue to support higher production going forward," ING analysts said in a note.

OTHER METALS: Aluminium closed down 0.3 percent at $1,882.50 a tonne. Lead finished 0.9 percent higher at $2,079 and tin ended down 0.9 percent at $19,225.

(Additional reporting by James Regan; editing by Keith Weir and Jane Merriman)