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

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

LONDON, July 27 (Reuters) - Tin hit its highest price in six months on Thursday as reports of smelter shutdowns in China tempered worries that exports from the world's largest tin producer will soar this year.

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 was last bid up 1.5 percent in official midday rings at $20,625.

* INVENTORIES: Latest LME data showed tin stocks held in exchange-registered warehouses at 2,095 tonnes, having fallen 65 percent since February. <MSN-STOCKS>

* COPPER: Copper hovered near a two year high of $6,400 hit in the previous session, with traders bidding it up 0.4 percent in rings at $6,354 on a weaker dollar and an upbeat view of demand growth in top consumer China.

* 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: Global miner and trader 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.

* ALUMINIUM: Russia's Rusal said it expected oversupply in China's aluminium market to narrow in the second half, leading to a "much tighter market" for 2018. It also expected another 2-3 million tonnes of operating capacity to be shut by year-end.

* METAL PRICES: Aluminium traded up 0.1 percent in rings at $1,943.50 a tonne, nickel traded up 1.1 percent at $10,150, zinc was last bid up 0.1 percent at $2,810 while lead was last bid up 0.4 percent at $2,322.

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