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METALS-Copper edges back from 11-week peak as dollar firms

* Copper retreats from Friday's peak of $5,854.50/T

* Lead prices reach highest since May 3

* LME/ShFE arb - http://tmsnrt.rs/2oQ5nm2 (Updates with official prices)

LONDON, June 26 (Reuters) - Copper edged lower on Monday as the dollar firmed, but the industrial metal held near the previous session's 11-week high as expectations for upbeat Chinese demand and concern over mine supply lent support.

Other base metals largely rose, with lead reaching its highest in nearly eight weeks and zinc holding near Friday's 11-week peak as on-warrant London Metal Exchange stocks -- metal not earmarked for delivery and therefore available to the market -- fell to their lowest in nearly a decade.

"Copper looks poised to move higher," said Societe Generale analyst Robin Bhar. "We've had some reasonably good data on the demand front out of China in terms of state power grid authorisations, better automobile production, a stable housing market. At the same time you've had supply concerns returning."

A seasonal rise in electricity usage is likely to buttress Chinese appetite for copper in the second half of the year, Argonaut Securities said in a report. China's tenders for state grid projects picked up in May to more than eight from about two a month in April and March.

* LME COPPER: London Metal Exchange copper was at $5,795 a tonne in official midday trading, down 0.1 percent, after a 1 percent gain in the previous session. LME copper touched its highest since April 7 on Friday at $5,854.50.

* FINANCIAL MARKETS: The dollar rose 0.1 percent against the euro, though gains were muted ahead of a week packed with speeches from the U.S. Federal Reserve and other central banks.

* COPPER STOCKS: Copper inventories in London Metal Exchange warehouses <MCU-STOCKS> fell another 4,025 tonnes on Friday, exchange data showed, and are now down nearly 100,000 tonnes, or 28 percent, from their early May peak.

* POSITIONING: Hedge funds and money managers cut their net long position in copper futures and options by 13,552 contracts to 49,285 in the week to June 20, U.S. Commodity Futures Trading Commission data showed on Friday.

* ZINC STOCKS: Zinc inventories in LME warehouses <MZN-STOCKS> fell to their lowest since early 2009 at 301,175 tonnes, exchange data showed, while on-warrant stocks hit their lowest since late 2007 at 81,150 tonnes.

* ZINC AND LEAD: LME zinc was untraded in official rings and was last bid at $2,724 a tonne, up 0.7 percent but off Friday's peak of $2,747, its highest since April 7. Lead was up 1.1 percent at $2,253 in official trading, having earlier hit its highest since May 3 at $2,258.50.

* ZINC SPREAD: The discount of the cash contract in LME zinc over the three-month contract has narrowed to zero, exchange data showed, suggesting a tighter LME market.

* OTHER METALS: Other LME metals were untraded in official rings. LME aluminum was last bid down 0.2 percent at $1,862.50 a tonne, while tin was last bid 0.1 percent higher at $19,250 and nickel was flat at $9,080.

(Additional reporting by Melanie Burton in Melbourne; Editing by Edmund Blair and David Goodman)