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METALS-Shanghai aluminium, copper surge on capacity cuts

MELBOURNE, Aug 9 (Reuters) - Shanghai aluminium and copper roared to the highest in around five years on Wednesday as investors flooded into metals on expectations of capacity cuts in coal and aluminium in China.

FUNDAMENTALS

* Shanghai aluminium traded up 5.2 percent, having struck the highest in five years at 16,330 yuan ($2,436) a tonne in the overnight session. Open interest has surged by one third since the start of August and is nearing the December 2015 record.

* LME aluminium hovered close to three-year highs, down 0.2 percent at $2,027 a tonne. Prices burst through the psychological $2,000 level on Tuesday to top out at $2,035, the highest since Nov. 2014 in a record day for turnover.

* China's Shandong province has ordered 3.21 million tonnes of aluminium smelting capacity to be shut in the world's top producer of the metal, more than previously expected, as Beijing intensifies efforts to curb pollution in its bloated heavy industries.

* The U.S. Commerce Department said on Tuesday it made a preliminary finding that imports of aluminium foil from China are subsidized, and it imposed countervailing duties ranging from 16.56 percent to 80.97 percent.

* Shanghai copper was trading up 0.7 percent at 51,090 yuan a tonne, having pushed to its highest in more than four years.

* LME copper hovered near 2-1/2 year highs, at $6,466.50 a tonne and easing 0.2 percent. Prices topped out at $6,493 on Tuesday, the highest since Dec 2014. On Tuesday turnover volumes were at typical levels around 21,000 lots, suggesting interest in chasing prices higher may be tailing off.

* North Korea said on Wednesday it is "carefully examining" plans for a missile strike on the U.S. Pacific territory of Guam, just hours after U.S. President Donald Trump told the North that any threat to the United States would be met with "fire and fury."

* China's exports and imports grew much less than expected in July, raising concerns over whether global demand is starting to cool even as major Western central banks consider scaling back years of massive stimulus support.

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MARKETS NEWS

* Asian shares and U.S. stock futures slipped while U.S. Treasuries, gold and the safe-haven yen rose in early Asian trading on Wednesday after tensions on the Korean peninsula escalated with Pyongyang's warning that it is "carefully examining" plans for a missile strike on the U.S. Pacific territory of Guam.

DATA/EVENTS 0130 China Consumer prices Jul 0130 China Producer prices Jul 1400 U.S. Wholesale sales Jun PRICES

BASE METALS PRICES

Three month LME copper 6474.5 Most active ShFE copper 51180 Three month LME aluminium 2035 Most active ShFE aluminium 16270 Three month LME zinc 2939 Most active ShFE zinc 24500 Three month LME lead 2398.5 Most active ShFE lead 19475 Three month LME nickel 10760 Most active ShFE nickel 88110 Three month LME tin 20275 Most active ShFE tin 146990

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 596.33 LME/SHFE ALUMINIUM LMESHFALc3 386.48 LME/SHFE ZINC LMESHFZNc3 1045.37 LME/SHFE LEAD LMESHFPBc3 21.73 LME/SHFE NICKEL LMESHFNIc3 1646.74

($1 = 6.7049 Chinese yuan renminbi)

(Reporting by Melanie Burton; Editing by Richard Pullin)