* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm2 (Recasts, updates prices, changes dateline; adds details, quote)
LONDON, July 7 (Reuters) - Aluminium dipped on Friday after touching a five-week high in the previous session, hit by profit taking and by signs that supply is still robust despite worries that Chinese smelters will be forced to shut capacity.
Earlier this year, China ordered steel and aluminium producers in 28 cities to slash output during winter as Beijing intensifies its war on smog.
"We've always been biased towards the China capacity cuts story, but near term there's loads of aluminium hanging around. There's been a big rise in Chinese exports and premiums are beginning to be depressed around the world," said Vivienne Lloyd, analyst at Macquarie.
* ALUMINIUM: Benchmark aluminium on the London Metal Exchange fell 0.4 percent to $1,936 a tonne at 1015 GMT, having hit its highest since May 30 on Thursday at $1,948.
* SUPPLY: Aluminium inventories in warehouses monitored by the Shanghai Futures Exchange <AL-STX-SGH> rose 1,006 tonnes from last Friday to 433,548, their highest since May 2013, exchange data showed.
* TECHNICALS-LME aluminium may test resistance at $1,951, per tonne, a break above which could lead to a gain to the next resistance at $1,964.
* COPPER: Bellwether copper, usually the driving force in the base metals complex, was flat at $5,852 a tonne.
* CHINA: The mood in Chinese markets has been cautious ahead of a raft of data expected to show steady growth although government measures to rein in the housing market and debt risks are likely to drag on activity in the next few quarters. China accounts for about half of global base metals demand.
* MARKETS: Bets that the world's major central banks are moving closer to unwinding ultra-loose monetary policies have roiled global equities in recent days, while falling oil prices have also weighed.
* PHILIPPINES: Nickel came under pressure after the new environment minister lifted a restriction on issuing environmental permits to projects, including mine exploration and development, reversing a previous order by his controversial predecessor dismissed in May.
* NICKEL: The news from the Philippines has eased worries about shortages of the metal used to make stainless steel, where production is slowing. Three-month nickel fell 0.8 percent to $9,000 a tonne.
(Additional reporting by James Regan; Editing by Edmund Blair)