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METALS-London copper shrugs off firmer dollar as China demand supports

MELBOURNE, Dec 4 (Reuters) - London copper held its ground on Monday, defying a stronger dollar to find support from resilient manufacturing demand in top consumer China.

FUNDAMENTALS

* COPPER: London Metal Exchange copper edged up by 0.1 percent to $6,841 a tonne by 0228 GMT, adding to 1.1 percent gains from the previous session. Prices last week fell by 2.4 percent trimming copper's advance for the year to 23 percent, still its largest advance since 2010.

* SHFE: Shanghai Futures Exchange copper rose by 1 percent to 53,360 yuan ($8,066) a tonne.

* CHINA ECONOMY: China's manufacturing activity remained in expansion mode but grew at the weakest pace in five months in November as input costs remained high and tougher pollution measures weighed on business confidence.

* RIO TINTO: Rio Tinto Ltd ended months of speculation on Monday, naming Simon Thompson as its next chairman to succeed Jan du Plessis, who will step down after serving almost nine years as chair of the Anglo-Australian mining house.

* CHINA: Rio also pointed to a possible slowing in China over the next six months, with a weakening in construction, infrastructure and automotive demand growth, but said it remains optimistic about China in the medium to long term.

* ADANI: Industrial and Commercial Bank of China (ICBC) 601398.SS, said on Sunday it has no intention of financing a controversial A$16.5 billion ($12.5 billion) Australian coal mine being built by Indian conglomerate Adani Enterprises ADEL.NS. CHINA ALUMINIUM: China's central Shanxi province has introduced new rules curbing water use for steel, cement and aluminium production, state media reported on Sunday, in another blow to sectors reeling from government-enforced output cuts.

* INVESTORS: Hedge funds and money managers raised their net long positions in COMEX gold and copper contracts in the week to Nov. 28, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

* In other metals, LME aluminium,, zincand lead all slipped around half a percent, paring strong advances on Friday.

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MARKETS NEWS

* The U.S. dollar bounced to a two-week top on Monday as traders celebrated the passage of a Senate tax bill over the weekend, while stronger U.S. stock futures pointed to a merry start for Asian shares.

DATA AHEAD (GMT)

0930 Euro zone Sentix index Dec 1000 Euro zone Producer prices Oct 1445 U.S. ISM-New York index Nov 1500 U.S. Factory orders Oct

PRICES

BASE METALS PRICES 0245 gmt Three month LME copper 6840 Most active ShFE copper 53370 Three month LME aluminium 2065 Most active ShFE aluminium 14495 Three month LME zinc 3227 Most active ShFE zinc 25605 Three month LME lead 2536.5 Most active ShFE lead 19070 Three month LME nickel 11340 Most active ShFE nickel 91720 Three month LME tin 0 Most active ShFE tin 141330

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 595.49 LME/SHFE ALUMINIUM LMESHFALc3 -1289.1

3

LME/SHFE ZINC LMESHFZNc3 243.84 LME/SHFE LEAD LMESHFPBc3 -1147.7 LME/SHFE NICKEL LMESHFNIc3 2752.71

($1 = 6.6151 Chinese yuan renminbi)

(Reporting by Melanie Burton; editing by Richard Pullin)