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METALS-Metals slip from peaks, but iron ore rally supports

MELBOURNE, Aug 22 (Reuters) - London copper edged down on Tuesday from three-year highs touched the session before, but the resumption of a rally in iron ore prices offered support to the sector.

FUNDAMENTALS

* LONDON COPPER: London Metal Exchange copper had slipped 0.3 percent to $6,567 a tonne by 0153 GMT. That followed 1.5-percent gains the previous session, when prices hit their highest since November 2014 at $6,623 a tonne.

* SHANGHAI COPPER: Shanghai Futures Exchange copper was holding 0.6-percent gains at 51,500 yuan ($7,737), having struck its strongest since March 2013 at 52,130 yuan a tonne overnight.

* OTHER METALS: ShFE nickel trimmed early gains to hold up 1.7 percent, while zinc and lead sagged by 0.8 and 2.5 percent respectively.

* CHINA STEEL: China's steel sector offered some support, with rebar flat and Dalian iron ore up 3 pct.

* PRICE OUTLOOK: "Maybe we have seen the high of this year, prices could consolidate a bit towards Q4," said one trader in Singapore. "I think medium term is still bullish on commodities (but) I am not too bullish for the short term. (Still), not a good time to short, even though looks high now."

* CHINA DEBT: Rising corporate profits are providing Chinese policymakers with room to do more to tackle the countrys growing debt problems without inflicting major damage on the economy.

* BHP: Global mining giant BHP Billiton posted a surge in annual underlying profit to $6.7 billion on Tuesday, but missed forecasts, and said it was putting its U.S. shale assets up for sale.

* GERMANY ECONOMY: The German economy could grow faster this year than earlier expected on the back of exceptionally strong industrial production, exports and consumption, the Bundesbank said in a monthly report on Monday.

* SHANGHAI FEES: The ShFE said on Monday it would adjust transaction fees for zinc futures for delivery in October and November and would limit the volumes non-members could trade each day from Aug. 23.

* CHILE: The Chilean government rejected on Monday a controversial $2.5-billion copper and iron project proposed by privately-held Andes Iron, though the company vowed to appeal.

* MINMETALS: China Minmetals Corp (CHMIN.UL) plans to invest 10 billion yuan ($1.50 billion) to upgrade its copper, lead and zinc smelting facilities Hunan province, a spokesman confirmed on Monday, after a recent rebuke from the Ministry of Environmental Protection (MEP).

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MARKETS NEWS

* Asian shares edged higher on Tuesday, taking solace from modest gains on Wall Street even as investors remained wary ahead of the annual central banking conference in Jackson Hole later this week.

DATA/EVENTS

0830 U.K. Public finances Jul 0900 Germany Economic sentiment index (ZEW) Aug 1300 U.S. Home prices (FHFA) Jun 1400 U.S. Richmond Fed manufacturing index Aug

PRICES

BASE METALS PRICES 0142 GMT Three month LME copper 6568 Most active ShFE copper 51530 Three month LME aluminum 2070 Most active ShFE aluminum 16310 Three month LME zinc 3110.5 Most active ShFE zinc 26095 Three month LME lead 2329.5 Most active ShFE lead 19155 Three month LME nickel 11295 Most active ShFE nickel 91510 Three month LME tin 20430 Most active ShFE tin 144360

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 542.59 LME/SHFE ALUMINIUM LMESHFALc3 315.17 LME/SHFE ZINC LMESHFZNc3 1304.28 LME/SHFE LEAD LMESHFPBc3 340.99 LME/SHFE NICKEL LMESHFNIc3 1795.98

($1 = 6.6563 Chinese yuan renminbi)

(Reporting by Melanie Burton; Editing by Joseph Radford)