* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm2 (Updates throughout, changes dateline from MELBOURNE)
LONDON, June 19 (Reuters) - Zinc touched a two-week high on Monday on rising steel prices and as inventories of the metal used to galvanize steel hit a nine-year low, highlighting a potential shortage of metal.
Zinc on the London Metal Exchange edged up 1 percent to $5,714.50 tonne by 1012 GMT, a high last seen on June 2.
"After years of waiting for zinc to tighten, it seems we are starting to see tangible signs that it's happening," Caroline Bain, senior commodities economist at Capital Economics, said.
She cited China's rising imports of refined zinc and falling zinc output in data.
ZINC STOCKS: The market focus is on New Orleans warehouses' on-warrant stocks which have dropped to 144,975 tonnes after a further 24,475 tonnes of cancellations or metal earmarked for delivery. <MZNSTX-TOTAL> On-warrant zinc stocks -- metal available to the market -- have fallen 54 percent this year to the lowest levels since July 2008.
STEEL PRICES: Chinese iron ore futures edged up along with steel but investment bank Citi said the steelmaking raw material is still under pressure amid a persistent glut.
CHINA: In April, China's refined zinc output fell to its lowest in more than two years due to mine closures.
COPPER: Copper prices added 0.9 percent to $5,717.50 per tonne helped by news and data from China that indicated higher demand for the commodity used in construction and power.
HOME PRICES: Home prices leveled off in China's biggest cities in May but continued to climb nationwide, indicating demand remains resilient despite a series of government measures to keep the market from overheating.
INVESTMENT: China's securities regulator said it will encourage wealth management firms to invest in commodity futures in a bid to promote its domestic derivatives industry and raise the amount of commodities in the nation's assets under management.
FINANCING: China's central bank plans to step up support for "green" financing, including incentives to encourage banks to extend more loans for projects friendly to the environment, a deputy governor said on Friday.
CFTC Speculators increased their net long position in copper futures and options, latest data from the U.S. Commodity Futures Trading Commission showed.
WARRANT HOLDINGS: Traders are watching large holdings of cash contracts and warrants of copper, aluminum and nickel. <0#LME-WHC>
PRICES: Aluminium rose 0.8 percent to $1,882 per tonne after touching its lowest since May 11 on Friday. Nickel climbed 1.2 percent to a five-week high of $2,138 per tonne. Tin rose 0.5 percent to $19,740 while lead added 1.6 percent to $2,145.50.
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(Additional reporting by Melanie Burton in Melbourne, editing by David Evans)