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METALS-London copper steady, China economic prospects underpin

BEIJING/MELBOURNE, Oct 25 (Reuters) - London copper was steady on Wednesday, after hitting its highest in a week in the previous session, on encouraging prospects for economic growth in China, the world's top consumer of metals.

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal

Exchange was down 0.02 percent at $7,034 a tonne, by

0218 GMT, after rising 0.4 percent in the previous session when it touched a one-week high and came within the reach of three-year peaks of $7,177 a tonne from Oct. 16.

* SHFE COPPER: The most-traded copper contract on the

Shanghai Futures Exchange slipped 0.2 percent to 55,160

yuan ($8,309). Prices are nearing a 4-1/2-year high at 55,910 yuan hit on Oct. 17.

* CHINA ECONOMY: China's economy will likely grow 6.8 percent in 2017, topping the state target and accelerating for the first time in seven years, a Reuters poll showed, as Beijing walks a tightrope by containing debt and property risks without stunting economic growth.

* USD: Metals faced some headwinds from the dollar which was close to two-week highs on a report that Stanford University economist John Taylor has support from a group of Republican Senators to be Federal Reserve chief offset news that might hamper the passage of a tax-cut plan.

* COPPER: The copper market should see a deficit of 151,000 tonnes this year and a deficit of 104,000 tonnes in 2018, the International Copper Study Group (ICSG) said on Tuesday.

* NICKEL: Nickel prices were supported after an industry group said demand would exceed supply for a third straight year in 2018 due to expansion in the stainless steel industry and batteries industries.

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MARKETS NEWS

* COPPER: A private coal mining industry investor in Shanxi province is said to be the main actor behind a dramatic increase in bullish bets in Chinese copper futures.

* NICKEL: Indonesia's PT Aneka Tambang Tbk (Antam) received a recommendation from the mining ministry for an additional 1.25 million tonnes of nickel ore exports over the next 12 months. Asian shares trod water in early trade on Wednesday, while U.S. Treasury yields and the dollar got a lift following a report Republican senators were leaning towards John Taylor to be the next Federal Reserve chief.

DATA AHEAD (GMT) 0800 Germany Ifo business climate Oct 0830 Britain Preliminary GDP Q3 1230 U.S. Durable goods Sep 1300 U.S. Monthly home price index Aug 1400 U.S. New home sales Sep PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium 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 = 6.6386 Chinese yuan)

(Reporting by Melanie Burton; Editing by Sherry Jacob-Phillips)