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METALS-Weaker dollar, supply worries underpin copper

(Adds comment, detail, updates prices) SYDNEY, July 12 (Reuters) - Copper prices climbed in Asia to the highest in more than one week on Wednesday amid a weaker U.S. dollar and concerns about industrial action that could further crimp mine supply. The dollar fell to a more than one-week low against a basket of major currencies on Tuesday, after U.S. President Donald Trump's eldest son released an email chain citing Russian support for his father before last year's U.S. election. Meanwhile, workers voted to approve a strike at a mine in Chile, following industrial disputes in Indonesia and at the world's biggest copper mine, also in Chile, earlier in the year, that whittled into copper supply. "The short term fundamentals look supportive on the price where it is, but the more we move into the fall and the winter, we just don't think that the pace of the Chinese economy can sustain," said analyst Dane Davis at Barclays in New York. "With the Chinese engaging in the policy of credit tightening and the real-estate sector starting to cool off, the evidence suggests you have a weakening in the market. Not a collapse, because the supply side is too tight, but a return to price around $2.50 (per pound, $5,500/tonne)." A weaker dollar typically draws interest for U.S. dollar-denominated commodities such as copper from investors outside the United States using other currencies.

FUNDAMENTALS

* LME COPPER: Three-month copper on the LME was up 0.5 percent at $5,902 a tonne by 0316 GMT, building on overnight gains in the more active London sessions.

* SHFE COPPER: The most-traded copper contract on the Shanghai Futures Exchange was 1.1 percent higher at 47,350 yuan ($6,962.21) a tonne.

* STEEL: SHFE zinc and nickel rallied more than 2 percent, tracking an uplift in steel amid higher profits at China's steel makers following closures of outdated capacity.

* STRIKE: Workers at the Zaldivar copper mine in Chile, owned by Antofagasta and Barrick Gold Corp, voted to approve a strike on Monday after talks with the company failed, a union leader told Reuters.

* FREEPORT: Indonesia says it will invite the head of mining giant Freeport McMoRan Inc to Jakarta this month to try to settle a long-running dispute over a new deal to operate the world's second-largest copper mine.

* CHINA CAR SALES: Vehicle sales rebounded in June, shaking off weakness in the previous two months.

MARKETS NEWS

* Asian shares steadied on Wednesday after Wall Street managed to weather a fresh twist in the political controversy surrounding U.S. President Donald Trump's administration, while investors looked ahead to Federal Reserve Chair Janet Yellen's comments later in the day.

Three month LME copper 5903.5 Most active ShFE copper 47320 Three month LME aluminium 1902.5 Most active ShFE 14240

aluminium

Three month LME zinc 2831.5 Most active ShFE zinc 23310 Three month LME lead 2314.5 Most active ShFE lead 17910 Three month LME nickel 9210 Most active ShFE nickel 75690 Three month LME tin 19865 Most active ShFE tin 145120 LME/SHFE COPPER LMESHFCUc3 594.22 LME/SHFE ALUMINIUM LMESHFALc3 -780.18 LME/SHFE ZINC LMESHFZNc3 356.3 LME/SHFE LEAD LMESHFPBc3 -1313.51 LME/SHFE NICKEL LMESHFNIc3 2152.61

($1 = 6.8010 Chinese yuan)

(Reporting by James Regan; Editing by Joseph Radford and Biju Dwarakanath)