* GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl
* LME/ShFE arb: http://bit.ly/2wZSAEz (Updates with official prices)
LONDON, Jan 12 (Reuters) - Zinc prices edged up to their highest in more than a decade on Friday, supported by potential shortages and low inventories, but some investors were concerned about the lofty levels.
Benchmark zinc on the London Metal Exchange rose to $3,409 a tonne, the strongest since August 2007, and was bid unchanged at $3,386 after failing to trade in official open outcry activity.
Zinc has rallied 11 percent since early December and was the top gainer among LME metals last year, surging 32 percent.
"Global exchange inventories have declined to about six to seven days of global consumption, so stocks are tight, and China's environmental checks will continue, so that will limit supply growth domestically," said Xiao Fu, head of commodity market strategy at Bank of China International in London.
"Fundamentally it's tight, but people are getting worried at these high price levels. Funds are probably a bit reluctant to chase the rally from here. We think there's moderate upside, we're cautiously bullish."
LME inventories <MZNSTX-TOTAL> have tumbled 58 percent over the past 12 months to 180,150 tonnes after closures and suspensions of big mines in recent years.
* COPPER - LME three month copper dipped 0.4 percent in official rings to trade at $7,110 a tonne, pressured slightly by Chinese data.
* CHINA TRADE DATA - China's unwrought copper imports fell 4.3 percent in December from a month earlier, but imports still stood at the second-highest level in 2017.
* CHINA COPPER PREMIUM - The Yangshan copper premium was down to $74 a tonne from a peak of $80 in late December, Alastair Munro at broker Marex Spectron said in a note.
* ALUMINIUM - LME aluminium was the best performer on the exchange, rising 2.2 percent to $2,222.50 a tonne in official trading, shrugging off news of higher Chinese exports.
* CHINA ALUMINIUM EXPORTS: China's exports of unwrought aluminium and aluminium products rose for a second straight month in December, by 15.8 percent from November.
* NICKEL: LME nickel recovered from a sell-off in the previous session to trade 0.5 percent firmer at $12,685 a tonne in official rings.
Munro said nickel was the second biggest long of the LME complex based on Marex estimates. There also was also evidence that Chinese investors were seeking to sell into the recent rally, he added.
* DOLLAR - Base metals got support from a weaker dollar , making commodities priced in the greenback cheaper for buyers using other currencies.
* PRICES - Lead was bid down 0.8 percent at $2,528 and tin traded up 0.2 percent at $20,270 in official activity.
(Additional reporting by James Regan in Sydney; Editing by Mark Potter and David Evans)