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METALS-Zinc climbs as Chinese steel prices surge to new peaks

* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm2 (Adds comments, updates prices, changes dateline from SYDNEY)

LONDON, Aug 4 (Reuters) - Zinc prices clawed higher on Friday, getting a boost from another surge in Chinese steel prices and from investors who are still bullish about shortages of metal developing.

Chinese rebar steel futures jumped 4 percent to their highest in four years on Friday, reflecting firm demand for the building material in the world's top consumer.

Zinc is often influenced by steel prices since its biggest use is for galvanizing steel.

Some investors have become wary about zinc's bull story after Chinese output unexpectedly rose 17 percent month-on-month in June despite last year's closures and suspensions in zinc mines, said analyst Vivienne Lloyd at Macquarie.

"That's made people wonder whether the expectation of zinc cuts has been too optimistic and in fact the Chinese smelters are able to continue to produce at stronger levels than expected," she said.

"We tend to think that one month's print isn't enough to ruin the bull story, but it has caught our attention ... I think people today are looking at whether it has been carried down too far and are thinking about entry points."

* ZINC - Benchmark zinc on the London Metal Exchange was the biggest mover, up 1.2 percent at $2,825.50 a tonne by 1013 GMT after slipping 0.3 percent in the previous session.

* ZINC STOCKS - Zinc inventories in warehouses registered by the LME down 38 percent this year, data shows. <MZNSTX-TOTAL>

* U.S. DATA - Investors were eyeing monthly U.S. non-farm payrolls data due out later on Friday, which is expected to show an increase of 183,000 jobs last month.

* ALUMINIUM - LME aluminum was the only metal in the red, slipping 0.3 percent to $1,910 a tonne.

"The market is trading towards bottom end of its range and consumer buying has been evident into this area. The technical long-term up trend line is at $1899 from the September 2016 low," Alastair Munro at broker Marex Spectron said in a note.

* COPPER: Three-month LME copper added 0.1 percent to $6,357 a tonne.

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(Reporting by Eric Onstad, editing by David Evans)