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METALS-Shanghai nickel touches highest since November on output concerns

BEIJING, Jan 11 (Reuters) - Nickel prices on the Shanghai Futures Exchange (ShFE) climbed as much as 1 percent to their highest in almost two months on Thursday, tracking a rise in London a day earlier, as concerns over production outages lent support to the market.

FUNDAMENTALS

* SHFE NICKEL: The most traded Shanghai nickel was up 0.8 percent at 101,110 yuan ($15,529) a tonne at 0212 GMT, having earlier touched 102,380 yuan a tonne, its highest since Nov. 9.

* LME NICKEL: Benchmark nickel on the London Metal Exchange was down 0.9 percent at $12,820 a tonne, partly reversing Wednesday's gains, when it touched $13,200 a tonne, its highest since June 2015.

* MADAGASCAR: Japan's Sumitomo Corp on Thursday said it and partners Sherritt International Corp and

Korea Resources Corp halted output at the Ambatovy

nickel mine in Madagascar on Jan. 4, the day before Cyclone Ava hit the area.

* COPPER: Three-month copper on the LME was up 0.2 percent at $7,164 a tonne, building on its 0.7 percent gain in the previous session. The most-traded SHFE copper contract was up 0.3 percent at 55,030 yuan a tonne.

* CHINA: Tongling Nonferrous Metals Group, one of China's top copper smelters, will suspend production at its Jinguan Copper unit for three days from Friday for repairs, a source familiar with the matter said.

* PERU: The government of Peruvian President Pedro Pablo Kuczynski is evaluating a $2.4 billion railway project to transport mineral concentrates from a copper-rich Andean region to the Pacific coast for export.

* ALUMINIUM: Liberty House, the industrial arm of British steel tycoon Sanjeev Gupta's GFG Alliance, has made a binding offer for miner Rio Tinto's <RIO.AX<, aluminium smelter in Dunkirk, France, the largest in Europe.

* CANADA: Unionized workers at Alcoa Corp's aluminium smelter in Becancour, Quebec rejected the company's latest contract offer.

* COBALT: Democratic Republic of Congo is considering more than doubling royalties on cobalt, a key ingredient in lithium-ion batteries, under a new mining code nearing parliamentary approval, the mines minister said on Wednesday.

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MARKETS NEWS

* The New Year rally in Asian shares ran out of steam on Thursday as concerns about the U.S. administration's protectionist stance hit Wall Street while U.S. bonds were dented by speculation China may curtail buying.

DATA AHEAD (GMT)

0900 Germany Full Year GDP 2017 1000 Euro Zone Industrial Production Nov

PRICES

BASE METALS PRICES 0212 GMT Three month LME copper 7164 Most active ShFE copper 55030 Three month LME aluminium 2194.5 Most active ShFE aluminium 15170 Three month LME zinc 3350.5 Most active ShFE zinc 26130 Three month LME lead 2554.5 Most active ShFE lead 19375 Three month LME nickel 12825 Most active ShFE nickel 101110 Three month LME tin 20025 Most active ShFE tin 145370

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 591.34 LME/SHFE ALUMINIUM LMESHFALc3 -1456.49 LME/SHFE ZINC LMESHFZNc3 319.79 LME/SHFE LEAD LMESHFPBc3 -660.78 LME/SHFE NICKEL LMESHFNIc3 1783.2

($1 = 6.5110 Chinese yuan renminbi)

(Reporting by Tom Daly; editing by Richard Pullin)