(Adds detail, updates prices) SYDNEY, Oct 17 (Reuters) - London copper slipped from three-year highs on Tuesday as a stronger dollar encouraged profit-taking, but renewed optimism over China's economic outlook supported prices. Metals prices could find more support if China's National Party Congress this week unveils polices that extend the country's industry reform to protect the environment, said Standard Chartered in a report. "Any signalling by policy makers that the rigorous application of environmental regulations on industry and seasonal pollution-reducing policies will be the norm over the next five years will be a price-positive development for the complex." The twice a decade National Party Congress begins on Wednesday.
* LME COPPER: London Metal Exchange copper had eased 0.7 percent to $7,083 a tonne by 0700 GMT, following its biggest daily jump in eight months at 3.7 percent on Monday. Prices struck $7,177 a tonne in the previous session, the highest since July 2014.
* SHFE COPPER: Shanghai Futures Exchange copper advanced 1.9 percent to 55,120 yuan ($8,332) a tonne. It earlier hit its highest since Feb 2013 at 55,910.
* SCRAP: China may ban traders from importing scrap copper from the start of next year, a widely read industry website reported on Monday, as the world's top metals user deepens its crackdown on imports of foreign waste and cuts pollution from heavy industries.
* SELLING: Traders noted selling from producers and CTAs. Risk was also being cut ahead of the start of China's Congress.
* CHINA ECONOMY: China's producer profits and copper imports have picked up, recent data showed, even as China's economic growth is expected to ease to 6.8 percent in the third quarter from 6.9 percent in the previous quarter due to a cooling property sector and the government's battle against debt risks.
* RIO TINTO: Rio Tinto cut its mined copper production guidance for 2017 to 460,000-480,000 tonnes from 500,000-550,000 tonnes owing to a delayed ramp-up at its Chilean Escondida mine.
* ZINC: SHFE zinc slipped by 1 percent but was still near its highest in 9-1/2 years, having peaked at 26,630 on Oct. 9. LME zinc was also within reach of decade-highs at $3,308.75, with supply constrained by China's crackdown on polluters in heavy industry.
* ZINC SPREADS SLACKEN: The premium for cash zinc has slumped in recent days, suggesting that the metal may be delivered against short positions as the main October contract expires this week. LME cash <CMZN0-3> is at a $35 premium against the benchmark, down from $91 on Oct. 12.
* STOCKS: LME zinc stocks have already climbed about 20,000 tonnes since Oct. 5 to the highest since mid-July. <MZNSTX-TOTAL>
* U.S. DOLLAR: Headwinds came from the dollar, which was supported by a rise in Treasury yields following a report that U.S. President Donald Trump was favouring a policy hawk as the next head of the Federal Reserve.
* JAPAN MANUFACTURING: Confidence among Japanese manufacturers rebounded in October to match a peak last seen in mid-2007, a Reuters poll found, further evidence that the economic recovery is gathering momentum helped by a weak yen and strong overseas demand.
* COMING UP: U.S. Industrial production for September at 1315 GMT
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BASE METALS PRICES 0700 gmt Three month LME copper 7079.5 Most active ShFE copper 55120 Three month LME aluminium 2137 Most active ShFE 16350
Three month LME zinc 3155 Most active ShFE zinc 25560 Three month LME lead 2520.5 Most active ShFE lead 20085 Three month LME nickel 11665 Most active ShFE nickel 93410 Three month LME tin 20655 Most active ShFE tin 147080
BASE METALS ARBITRAGE
LME/SHFE COPPER LMESHFCUc3 501.02 LME/SHFE ALUMINIUM LMESHFALc3 -99.9 LME/SHFE ZINC LMESHFZNc3 614.06 LME/SHFE LEAD LMESHFPBc3 -171.47 LME/SHFE NICKEL LMESHFNIc3 2386.34
($1 = 6.6154 Chinese yuan renminbi)
(Reporting by James Regan and Melanie Burton; Editing by Biju Dwarakanath)