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METALS-Shanghai copper rises as traders take pre-holiday positions

BEIJING, Feb 14 (Reuters) - Shanghai copper prices rose for a second session on Wednesday, tracking a strong jump in London the previous day, as traders took up new positions in the metal before the Shanghai Futures Exchange (ShFE) closes for a week-long holiday.

FUNDAMENTALS

* SHFE COPPER: The most-traded April copper contract on the ShFE was up 1.4 percent at 52,590 yuan ($8,286.72) a tonne, as of 0210 GMT.

* OPEN INTEREST: Market open interest on Shanghai copper hit 811,170 lots on Tuesday, the highest since January 2016, ahead of the Lunar New Year holiday in China beginning on Thursday.

* LME COPPER: Three-month copper on the London Metal Exchange climbed 0.2 percent to $6,998.50, having briefly broken above the barrier of $7,000 a tonne.

* NICKEL ZINC: Shanghai nickel gained 2.4 percent, tracking a 2.7 percent rise in London on Tuesday, while zinc climbed 1.9 percent on indications of a tight market.

* ALUMINIUM: U.S. President Donald Trump said on Tuesday he was considering a range of options to address steel and aluminum imports that he said were unfairly hurting U.S. producers, including tariffs and quotas.

* CENTRAL ASIA: Base metals miner Central Asia Metals (CAML) is on the hunt for a new copper project in Southern Africa for up to $400 million in what would be its first foray into the continent, its chief executive said.

* RIO: Standard & Poor's on Tuesday raised its credit rating on global miner Rio Tinto for the first time since 2011 on the back of strong financial results and said the global miner could easily fund a big acquisition.

* COBALT: The London Metal Exchange could remove companies from its list of approved metal suppliers if they fall short of industry standards following an outcry about cobalt mined by children in Africa, three sources said.

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MARKETS NEWS

* Asian shares were set for a tense session on Wednesday as investors await readings on U.S. inflation that could fan fears of faster rate hikes and unleash another burst of global volatility.

DATA AHEAD (GMT)

0700 Germany GDP flash estimate Q4

1000 Euro zone GDP flash estimate Q4 1000 Euro zone Industrial production Dec

1330 U.S. Consumer prices Jan 1330 U.S. Retail sales Jan 1500 U.S. Business inventories Dec

PRICES

BASE METALS PRICES 0210 GMT Three month LME copper 6998.5 Most active ShFE copper 52590 Three month LME 2141

aluminum

Most active ShFE 14325

aluminum

Three month LME zinc 3464.5 Most active ShFE zinc 26530 Three month LME lead 2557 Most active ShFE lead 19265 Three month LME nickel 13495 Most active ShFE nickel 102720 Three month LME tin 21540 Most active ShFE tin 148630

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 825.7 LME/SHFE ALUMINIUM LMESHFALc3 -1457.7 LME/SHFE ZINC LMESHFZNc3 476.92 LME/SHFE LEAD LMESHFPBc3 -382.18 LME/SHFE NICKEL LMESHFNIc3 438.41

($1 = 6.3463 Chinese yuan)

(Reporting by Tom Daly, Editing by Sherry Jacob-Phillips)