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METALS-Shanghai aluminum climbs over 1 pct on China production cuts

BEIJING, Dec 20 (Reuters) - Shanghai aluminum prices rose over 1 percent on Wednesday, bouncing back from a slight dip in the previous session, as production cuts in China continued to provide end-of-year support to the market.

FUNDAMENTALS

* SHFE ALUMINIUM: The most-traded February contract in Shanghai was up 1.3 percent at 14,670 yuan ($2,221.55) per tonne at 0203 GMT, heading for a fourth session of gain in five after data out last week showed a hefty drop in China's November aluminum output.

* LME ALUMINIUM: Three-month aluminum on the London Metal Exchange was down 0.3 percent at $2,093 a tonne, having touched a three-week peak on Tuesday.

* COPPER: The most-traded February copper contract on the ShFE gained 0.2 percent to 53,650 yuan a tonne, but copper on the LME was down 0.2 percent at $6,928.50 a tonne.

* UNITED STATES: U.S. President Donald Trump's new security strategy bolsters the case for trade actions to protect U.S. economic interests on national security grounds, including possible import tariffs on steel and aluminum, a senior Trump administration official said on Tuesday.

* AUSTRALIA: Downer EDI Ltd, a mining contractor, said on Wednesday it had secured a mining services contract at the Gruyere Gold Project worth about A$400 million ($306.56 million).

* IRON ORE: China's aggressive campaign to clean its skies by clamping down on polluting steel mills has fueled a need for high-grade iron ore, and a prospector in the Australian outback is hoping that will help fund an ambitious plan to develop a full-scale mine.

* BHP: Global miner BHP Billiton, said on Tuesday it had taken a preliminary decision to leave the World Coal Association (WCA) over differences on climate change and might also withdraw from the U.S. Chamber of Commerce.

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MARKETS NEWS

* Asian shares fell on Wednesday, taking their cues from Wall Street with investor enthusiasm toward U.S. tax changes ebbing as the long-awaited reform bill wound its way through Congress, while higher U.S. Treasury yields underpinned the dollar.

DATA AHEAD (GMT)

0700 Germany Producer prices Nov 0900 Euro zone Current account Oct 1500 U.S. Existing home sales Nov

PRICES

BASE METALS PRICES 0203 GMT Three month LME copper 6928.5 Most active ShFE copper 53650 Three month LME aluminum 2092.5 Most active ShFE aluminum 14670 Three month LME zinc 3213.5 Most active ShFE zinc 25500 Three month LME lead 2556.5 Most active ShFE lead 19340 Three month LME nickel 11800 Most active ShFE nickel 95000 Three month LME tin 19350 Most active ShFE tin 137580

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 317.11 LME/SHFE ALUMINIUM LMESHFALc3 -1354.33 LME/SHFE ZINC LMESHFZNc3 366.07 LME/SHFE LEAD LMESHFPBc3 -1106.58 LME/SHFE NICKEL LMESHFNIc3 2323.88

($1 = 6.6035 Chinese yuan)

(Reporting by Tom Daly; Editing by Subhranshu Sahu)