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METALS-Weaker dollar, supply worries underpin London copper

(Adds comment, detail, updates prices) MELBOURNE/SYDNEY, July 12 (Reuters) - Copper prices climbed in Asia to the highest in more than a week on Wednesday, spurred that could further crimp mine supply. The dollar fell to a more than one-week low against a basket of major currencies, after U.S. President Donald Trump's eldest son released an email chain suggesting he welcomed Russia's help in last year's election campaign. Workers also voted this week to approve a strike at a mine in Chile, following industrial disputes earlier in the year in Indonesia and at the world's biggest copper mine, also in Chile, that have whittled down copper supplies. "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 0.3 percent at $5,895 a tonne by 0712 GMT, having earlier topped out at $5,920 a tonne, the highest since July 3. Copper prices have held below $6,000 a tonne since early March.

* SHFE COPPER: Shanghai Futures Exchange copper ended up 0.9 percent at 47,250 yuan ($6,959) 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more than 2 percent, tracking an uplift in steel amid higher profits at China's steel makers following closures of outdated capacity.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 gained on Wednesday after Wall Street managed to weather a fresh twist in the controversy over U.S. President Donald Trump's alleged connection with Russia, while investors looked ahead to Federal Reserve Chair Janet Yellen's comments.

BASE METALS PRICES 0716 GMT Three month LME copper 5898 Most active ShFE copper 47250 Three month LME aluminium 1902.5 Most active ShFE aluminium 14215 Three month LME zinc 2837.5 Most active ShFE zinc 23335 Three month LME lead 2322 Most active ShFE lead 17915 Three month LME nickel 9220 Most active ShFE nickel 75800 Three month LME tin 19915 Most active ShFE tin 145330

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 558.18 LME/SHFE ALUMINIUM LMESHFALc3 -812.65 LME/SHFE ZINC LMESHFZNc3 331.8 LME/SHFE LEAD LMESHFPBc3 -1305.58 LME/SHFE NICKEL LMESHFNIc3 2051.65

($1 = 6.7899 Chinese yuan renminbi)

(Reporting by James Regan; Editing by Biju Dwarakanath and Richard Pullin)