* LME/ShFE arb - http://tmsnrt.rs/2oQ5nm2
* Copper touches highest since March 30
* Stronger zinc premia justifies $3,000 price-BoAML (Adds quote, updates prices)
LONDON, June 30 (Reuters) - Copper retreated from a three-month high on Friday, pressured by a firmer dollar and a rise in inventories, offsetting better than expected factory growth in top metals consumer China.
China's factories grew at the quickest pace in three months in June, buoyed by strong new orders in a sign of stabilizing growth, though analysts expect a further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks.
But that news, which supported prices during Asian trading, was countered during European activity.
"We also had the dollar rebounding a little bit, especially against the euro and that is causing some headwinds for the metals," said analyst Carsten Menke at Julius Baer in Zurich.
"I still see the copper market as rather loose, not as tight as some other analysts see it. From that perspective I think that lower prices, that is below $5,500, would be justified."
* COPPER: London Metal Exchange benchmark copper was down 0.1 percent at $5,937 a tonne at 1402 GMT, retreating from an intraday peak of $5,965, the highest since March 30. In the previous session copper gained 1 percent.
* Copper was eyeing a fourth consecutive quarter of gains and was on track to advance 7 percent for the first half.
* LME INVENTORIES: Copper stocks in LME warehouses rose 6,400 tonnes to 249,700 tonnes, LME data showed, indicating that supplies were adequate.
* ALUMINIUM - Three-month aluminum dipped 0.1 percent to $1,913.50. Prices are up 13 percent this year on concern about an environmental crackdown that is expected to cut production in the winter.
"I think most of these expectations are already priced into aluminum, that's why I don't see much upside from these levels. But I'm reluctant to be outright bearish in aluminum because the risk of the Chinese government acting is just too high," Menke said.
* LEAD: The LME price shed 0.6 percent to $2,301, but has rallied 14 percent in the first half to become the best performing base metal so far this year. Prices have been supported by tightly held available exchange stocks and as China has shipped in more metal.
ZINC: Zinc shed 0.1 percent to $2,752. Physical premia have risen globally, suggesting fundamentals on the refined market have strengthened, analyst Michael Widmer at Bank of America Merrill Lynch said in a note.
"Premia suggest that zinc prices around $3,000 are justified at present. Having said that, the slowdown in growth should increasingly cap prices into 2018."
* PRICES: Tin lost 0.3 percent to $20,000 after hitting $20,130, the strongest since June 6, and nickel added 0.5 percent to $9,335.
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(Additional reporting by Melanie Burton in Melbourne; Editing by Robin Pomeroy and Mark Potter)