SYDNEY, July 21 (Reuters) - A weak dollar helped lift copper prices above $6,000 a tonne in Asian trading on Friday, erasing an overnight dip and setting the stage for a strong start to the London market.
The dollar index, which tracks the greenback against a basket of six major rivals, was priced near its lowest level since August 2016.
A hobbled dollar coupled with a positive Chinese outlook for metals demand on Monday lifted copper above the psychologically key $6,000 mark for the first time since March 2.
A weaker dollar makes U.S. dollar-denominated commodities such as copper cheaper for investors using other currencies.
"The weak dollar will bring out buyers, some of whom might otherwise stick to the sidelines," a trader in Perth said.
* LME COPPER: Three-month copper on the London Metal Exchange was up 0.3 percent at $6,008.50 a tonne by 0700 GMT, reversing a modest loss in the previous session.
* SHANGHAI COPPER: The most-traded copper contract on the Shanghai Futures Exchange ended 0.52 percent firmer at 48,000 yuan ($7,097) a tonne.
* COPPER DEFICIT: The global world refined copper market showed a 53,000 tonnes deficit in April, compared with an 18,000 tonnes deficit in March, the International Copper Study Group (ICSG) said.
* ALUMINIUM OUTPUT UP: Daily average primary aluminium output excluding China rose to 70,300 tonnes in June, from 70,000 tonnes in May, data from the International Aluminium Institute (IAI) showed.
LME aluminium was up 0.04 percent at $1,924.50 a tonne. ShFE aluminium ended down 0.21 percent.
* STEEL TALKS: Seeking a more positive spin on U.S.-China economic talks viewed as ending in discord, China said on Thursday that the two sides agreed to "active and effective measures" to reduce global excess steel production capacity.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 6.7631 Chinese yuan)
(Reporting by James Regan; Editing by Richard Pullin and Subhranshu Sahu)