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METALS-Zinc hits week high on shortages, gains in steel prices

* LME/ShFE arb: http://bit.ly/2wZSAEz

* Copper touches highest in two weeks (Adds analyst comments, updates prices, changes dateline to LONDON)

LONDON, Nov 22 (Reuters) - Zinc climbed to the highest in over a week on Wednesday on persistent concern about shortages and after Chinese steel futures rallied.

The zinc market is tight, with treatment charges (TC) at low levels, an indication that concentrate supplies are thin, said Robin Bhar, head of metals research at Societe Generale.

"I still think prices need to stay at this level to get more supply. Spot TCs are still low, they haven't picked up, so there's a need to incentivise more supply."

Bhar said the broader market had found support after a correction in recent weeks when the lower prices sparked buying by industrial consumers.

"But I'm not getting carried away, I don't think we're going straight back up to the highs again, but we're at a new equilibrium after all that euphoria during LME Week."

The index of the main industrial metals on the London Metal Exchange (LME) touched the highest in over four years on Oct. 16, but over the following month shed 4 percent.

* LME ZINC: Benchmark zinc on the London Metal Exchange was up 1.4 percent at $3,236 a tonne by 1138 GMT, its highest since Nov. 13. Prices have also broken through shorter-dated moving averages, sending a buy signal to trend-following funds.

* STEEL RALLY: Zinc, mainly used for galvanizing steel, got support after Chinese steel futures rallied for a third straight session.

Sentiment on zinc was also bullish at the China Lead and Zinc Week gathering in Shenzhen, participants said.

* ZINC DEFICIT: The global zinc market deficit widened to 39,800 tonnes in September from a revised deficit of 38,700 tonnes in August, data from the International Lead and Zinc Study Group (ILZSG) showed.

* COPPER: LME three month copper rose 0.1 percent to $6,915 a tonne after touching a two-week high of $6,957.50.

* STRIKE: Southern Copper Corp said late on Tuesday that one of five unions for its workers in Peru had started an indefinite strike but that the stoppage had not affected normal operations at its mines.

* NICKEL: LME nickel shed 1.1 percent to $11,745 a tonne after posting gains of nearly 2 percent on Tuesday.

* ANTAM: Adding to pressure on nickel was news that Indonesia's state-owned diversified miner PT Aneka Tambang Tbk (Antam) is targeting a 162 percent jump in nickel ore sales next year to 11 million tonnes from an estimated 4.2 million tonnes this year.

* ALUMINIUM: LME aluminum rose 1.1 percent to $2,104 a tonne. "Turnover has picked up and aluminum is the only metal to register above average volumes this morning," Alastair Munro at broker Marex Spectron said in a note.

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DATA AHEAD (GMT)

1330 U.S. Durable goods Oct

1330 U.S. Weekly jobless claims

1500 Euro zone Consumer confidence flash Nov

1900 U.S. Federal Reserve releases minutes from

Oct.31-Nov.1 policy meeting

(Reporting by Eric Onstad; Editing by Elaine Hardcastle)