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METALS-Shanghai aluminum leads gains in steel-related base metals

SYDNEY, Aug 8 (Reuters) - Shanghai aluminum futures jumped more than 3 percent in a robust start to base metals trading on Tuesday, lifted by hefty gains in steel-related futures in China.

Iron ore and steel markets are typically used as indicators of demand for non-ferrous metals such as aluminum that are linked to infrastructure and construction activity.

FUNDAMENTALS

* ALUMINIUM: The most traded aluminum contract on the Shanghai Futures Exchange was up 3.4 percent to 15,550 yuan ($2,314) by 0149 GMT, the highest price in more than 4 -1/2 years.

* LME ALUMINIUM: Three-month London Metal Exchange aluminum , rose 0.8 percent to $1,980 a tonne, the highest since December 2014, according to Thomson Reuters data.

* CHINA CAPACITY CUTS: China earlier this year ordered steel and aluminum producers in 28 cities to slash output during winter as it fights smog. Last week, the key steel producing area of Tangshan and other parts of Hebei province said they will implement the order.

* REBAR UP: Chinese rebar steel futures rose another 1.2 percent afer surging as much as 7 percent on Monday to their highest in more than four years.

* COPPER RISING: ShFE copper rose more than 1 percent to 50,940 yuan a tonne. LME copper was 0.2 percent higher at $6,428.50 a tonne, coming close to retesting Monday's 14-month peak of $6,447.50.

* ZINC PRICES: Also benefiting from the Chinese steel price surge was zinc, used mainly to galvanize steel. LME zinc gained 1 percent to $2,886 a tonne. ShFE zinc was up 2.5 percent to more than a 7-1/2-year high. high

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MARKETS NEWS

* Asian shares neared decade peaks on Tuesday thanks to optimism on the global economy and a rash of records on Wall Street, while major currencies were becalmed ahead of Chinese trade data.

DATA AHEAD (GMT)

0130 Australia NAB business conditions index July

0600 Germany Trade data June

0645 France Trade data June

1000 U.S. Small-business confidence index July

1400 U.S. JOLTS Job openings June

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

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 = 6.7207 Chinese yuan renminbi)

(Reporting by James Regan; Editing by Richard Pullin)