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METALS-Metals slip from multi-year peaks after Trump talks up dollar

(Adds analyst comment, updates prices) BEIJING, Jan 26 (Reuters) - Base metal prices on Friday edged down from near multi-year peaks after U.S. President Donald Trump backed a stronger dollar, prompting the currency to trade above its recent lows. A stronger dollar makes metals more expensive for holders of other currencies. Its recent weakness had seen copper jump 1.5 percent in Shanghai on Thursday, following a similar climb in London on Wednesday, while Shanghai nickel gained 3.5 percent. "The previous day's bounce was too sudden. After the prices rose, there are not many people looking to buy high," Xu Maili, director of non-ferrous metal research at Everbright Futures in Shanghai, said on Friday. "After all, the fundamentals are not good. A correction is very normal." Commodity prices could take their next cue from preliminary U.S. GDP figures for the fourth quarter of last year that are due Friday, said Edward Meir, commodity consultant with INTL FCStone. "If we get an upside surprise in the GDP figure, we could see a round of dollar short-covering, followed by overdue profit-taking in a number of commodity complexes," Meir wrote in a note.

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange was down 0.3 percent at $7,119,50 a tonne at 0523 GMT, after a 0.2 percent drop in the previous session. The metal remains on course for a weekly rise of 1.1 percent.

* INVENTORIES: On-warrant copper stocks in LME-approved warehouses jumped by 24,825 tonnes to 253,400 tonnes on Thursday, surging 67 percent over the past week. Headline levels have climbed by 46 percent to 299,600 tonnes.

* SHFE COPPER: The most-traded March copper contract on the Shanghai Futures Exchange dipped 0.2 percent to 53,450 yuan ($8,447.12) a tonne.

* CHILE: Chile's state-owned Codelco , the world's largest copper miner, said on Thursday it had received environmental approvals for a revised plan to extend the working life of its century-old El Teniente copper mine.

* FREEPORT: Freeport-McMoRan Inc said it was edging closer to a permit deal with Indonesia for its massive Grasberg mine, but the world's second-biggest copper producer cautioned that it has not yet struck any formal agreements.

* NICKEL: ShFE nickel was the sole gainer among base metals in early trade on Friday, climbing another 1.1 percent to 103,730 yuan a tonne.

* REUTERS POLL: Supply problems including strikes at copper mines and pollution shutdowns at aluminium smelters will spur deeper shortages of the metals this year, but weaker Chinese demand may weigh on overcooked prices, a Reuters poll showed.

* COLUMN: What does looming U.S.-China trade showdown mean for aluminium?

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MARKETS NEWS

* Asian stocks came off record highs on Friday but were still poised to end the week with strong gains, while the battered dollar won back some ground after Trump's comments on the dollar.

DATA AHEAD (GMT)

0745 France Business climate Jan

0900 Euro zone Money supply Dec

0930 UK Preliminary GDP Q4 1330 U.S. Durable goods Dec 1330 U.S. Advance GDP Q4

PRICES

BASE METALS PRICES 0526 GMT Three month LME copper 7119.5 Most active ShFE copper 53450 Three month LME aluminium 2229.5 Most active ShFE aluminium 14620 Three month LME zinc 3440.5 Most active ShFE zinc 26160 Three month LME lead 2593 Most active ShFE lead 19460 Three month LME nickel 13550 Most active ShFE nickel 103720 Three month LME tin 21220 Most active ShFE tin 147350

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 908.82 LME/SHFE ALUMINIUM LMESHFALc3 -1768.68 LME/SHFE ZINC LMESHFZNc3 376.5 LME/SHFE LEAD LMESHFPBc3 -337.85 LME/SHFE NICKEL LMESHFNIc3 2126.55

($1 = 6.3276 Chinese yuan renminbi)

(Reporting by Tom Daly; Editing by Sherry Jacob-Phillips and Joseph Radford)