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METALS-Shanghai aluminum prices climb on China GDP, pollution alert

(Adds pollution alert, analyst comment; updates prices) BEIJING, Jan 19 (Reuters) - Shanghai aluminum prices rose on Friday, buoyed by the first acceleration in China's GDP growth in seven years and by a pollution alert in a major industrial province. The climb came even as the country's output of the metal on Thursday posted a surprise jump for December. "GDP, industrial production and fixed asset investment all recorded strong growth," ANZ wrote in a note on Friday about the China data. "The (metals) sector was also supported by some supply-side issues." Late on Thursday, the city of Zhengzhou, capital of the key aluminum-smelting province of Henan, raised its alert for air pollution to red, the highest level, effective from Friday. That means tighter curbs on output of industrial products, including metals. Heavy pollution in the Zhengzhou is expected to last until Jan. 23, according to state news agency Xinhua.

FUNDAMENTALS

* SHFE ALUMINIUM: The most-traded aluminum contract on the Shanghai Futures Exchange (ShFE) was up 0.75 percent at 14,730 yuan ($2,304.08) a tonne at 0518 GMT. It rose more than 1 percent in early trade, but is on course for a weekly drop of 2.5 percent.

* LME ALUMINIUM: In London, three-month aluminum edged down 0.3 percent to $2,235 a tonne, after ending up 2.2 percent in the previous session.

* CHINA: China's economy grew faster than expected in the fourth quarter of 2017, as an export recovery helped the country post its first annual acceleration in growth in seven years, defying concerns that intensifying curbs on industry and credit would hurt expansion.

* ALUMINIUM: China's aluminum production rebounded in December to its highest since June, reversing five months of declines and lifting 2017 output to a record.

* COPPER: The most-traded March copper contract in Shanghai was down 0.1 percent at 53,640 a yuan a tonne. Three-month London copper rose 0.3 percent to $7,095 a tonne, building on Thursday's gain of 0.6 percent, after a force majeure in Mongolia.

* MONGOLIA: The Oyu Tolgoi copper-gold mine in Mongolia's southern Gobi Desert declared force majeure after protests by Chinese coal haulers disrupted deliveries near the border, said majority owner Turquoise Hill.

* LEAD: Lead was the biggest gainer among base metals on the ShFE, rising 1.7 percent to 19,550 yuan a tonne after a red pollution alert in the key production hub of Jiyuan in Henan province.

* ZINC: Rising supplies of zinc over the next couple of years are unlikely to replenish dwindling inventories to the extent that the market stops fretting about shortages and driving up prices towards the peaks seen in 2007.

* NICKEL: The global nickel market deficit narrowed to 8,400 tonnes in November from 11,500 tonnes in the previous month, the International Nickel Study Group said on Thursday.

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MARKETS NEWS

* Asia stocks edged up to record highs on Friday, although losses on Wall Street slowed the advance, while worries over a possible U.S. government shutdown weighed on the dollar.

DATA AHEAD (GMT)

0700 Germany Producer prices Dec

0900 Euro zone Current account Nov

1500 U.S. Univ of Michigan sentiment index Jan

PRICES

BASE METALS PRICES 0518 GMT Three month LME copper 7095 Most active ShFE copper 53640 Three month LME aluminum 2235 Most active ShFE aluminum 14735 Three month LME zinc 3385.5 Most active ShFE zinc 25970 Three month LME lead 2605.5 Most active ShFE lead 19540 Three month LME nickel 12400 Most active ShFE nickel 95880 Three month LME tin 20465 Most active ShFE tin 144630

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 718.46 LME/SHFE ALUMINIUM LMESHFALc3 -1876.65 LME/SHFE ZINC LMESHFZNc3 376.56 LME/SHFE LEAD LMESHFPBc3 -587.33 LME/SHFE NICKEL LMESHFNIc3 2579.19

($1 = 6.3930 Chinese yuan renminbi)

(Reporting by Tom Daly; Editing by Joseph Radford)