METALS-Copper tops $7,000, helped by weaker dollar and shrinking supply

* LME/ShFE arb: http://bit.ly/2wZSAEz (Updates prices, adds detail)

LONDON, Nov 24 (Reuters) - Copper climbed above $7,000 towards a one-month high on Friday, helped by a weaker dollar and shrinking supplies, though concerns over demand from top consumer China capped gains.

The U.S. dollar hit a five-week low against a currency basket, still under pressure after the minutes from the latest U.S. Federal Reserve policy meeting highlighted concern among some board members over persistently low inflation.

A weak U.S. currency makes dollar-priced metals cheaper for non-U.S. investors.

Concern over China, which consumes nearly half the world's copper, centered on fresh economic data this week and Thursday's heavy equities sell-off, though its stock markets steadied on Friday.

Data this week showed China's economy cooled in October, with industrial output, fixed-asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.

Eugen Weinberg, head of commodities research at Commerzbank, says that risk-on sentiment has been a feature of the copper market for quite some time, but he expects a price correction before too long.

"We think prices are likely to correct from current levels because there are signs of slowing demand growth in China and most of the positive news seems to be reflected in the price."

* COPPER PRICE: Three-month copper on the London Metal Exchange traded 0.5 percent up in official midday rings at $6,999 a tonne, having touched $7,009.50, its highest since Nov. 1.

* COPPER STOCKS: Inventories in LME-registered warehouses continued to decline, falling by 5,475 tonnes to 213,600 tonnes. Stocks have fallen 30 percent since mid-September. <MCU-STOCKS>

* CHILE: Workers at BHP Billiton's Escondida copper mine in Chile ended a 24-hour strike on Friday but could down tools again next week over the company's planned layoffs, their union said.

* STEEL: Chinese steel prices rose 4 percent this week, supporting prices of steelmaking ingredients nickel and zinc, with strong profit margins encouraging mills to boost output despite official restrictions on sintering to cut pollution this winter.

* ALCOA: Aluminium producer Alcoa Corp has agreed to resume contract talks with the United Steelworkers union, the union said on Thursday, in an effort to averting a potential strike at the Becancour smelter in Quebec.

* QUEBEC ZINC: United Steelworkers has reached a tentative agreement with Noranda Income Fund on a new labor deal for 371 striking workers at a zinc refinery in Salaberry-de-Valleyfield, Quebec.

* METALS PRICES: Aluminium traded up 0.3 percent in rings at $2,120 a tonne, zinc was last bid up 0.3 percent to $3,246, lead was last bid up 1.3 percent at $2,486, tin traded up 0.6 percent at $19,540 and nickel traded up 1.4 percent at $12,100.

(Additional reporting by James Regan; Editing by Jason Neely and David Goodman)