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METALS-Tin hits six-month high on reports of shutdowns in China

* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm2 (Recasts, adds details)

LONDON, July 27 (Reuters) - Tin hit its highest price in six months on Thursday as reports of smelter shutdowns in China, the world's largest tin producer, raised worries supply would tighten further.

Media reports in China said smelters in the country's largest tin-producing province had been shut down on environmental concerns. China has been ramping up its war on pollution and industrial over-capacity this year.

"Given that the tin market was probably running short anyway this is the sort of information that would force shorts to cover and give a lift to prices," said Societe Generale analyst Robin Bhar.

"We might see the price dip back (down) again once it's realised that this (closure) is temporary, but like most things out of China, who knows?"

* TIN: London Metal Exchange tin struck its highest since January at $20,785 a tonne and traded up 2.1 percent at $20,750 at 1333 GMT.

* INVENTORIES: Latest LME data showed tin stocks at 2,095 tonnes, up 28 percent since early July but still near their lowest levels since 1989. The data also showed cancelled warrants or material set to leave warehouses accounted for 35.8 percent of total stocks. <MSN-STOCKS>

* TECHNICALS: Cash tin was trading at a premium of $175 versus the three month price <CMSN0-3>, indicating tight nearby supply.

* COPPER: Copper hovered near a two year high of $6,400 a tonne hit in the previous session, trading up 0.3 percent at $6,352 on a weaker dollar and an upbeat view of demand growth in top consumer China.

* DOLLAR: The dollar was steady, having sunk to a 2-1/2 year low on Wednesday after the U.S. Federal Reserve noted weakness in inflation more explicitly than before, tempering the rate hike outlook. A weak dollar makes metals priced in dollars cheaper for non-U.S. investors.

* CHINA DEMAND: Earnings for China's industrial firms surged 19.1 percent in June from a year earlier, accelerating from May in a sign economic momentum remained solid despite rising borrowing costs.

* METALS OUTPUT: Glencore said copper output for the first half fell 9 percent, nickel production dropped 10 percent while zinc output jumped 13 percent. The firm cut its full-year production forecast for copper, lead, nickel and zinc.

* METAL PRICES: Aluminium traded up 0.1 percent at $1,943.50 a tonne, nickel traded up 1.3 percent at $10,165, zinc was up 0.5 percent at $2,821.50 while lead was up 0.3 percent at $2,320.50.

(Additional reporting by Melanie Burton; Editing by David Clarke and Adrian Croft)