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METALS-Metal prices dip after China data disappoints

(Adds extra broker comment, updates prices) BEIJING, Feb 28 (Reuters) - Base metals mostly lost ground on Wednesday after U.S. Federal Reserve Chairman Jerome Powell's pledge to stick with gradual increases in interest rates boosted the dollar and top metal consumer China's manufacturing growth slowed more than expected. "Fed Chair Powell's testimony to the House Financial Services Committee was supportive of the USD as he indicated that the recent market swings have not changed the Fed's policy going forward," brokerage Marex Spectron wrote in a note. A stronger dollar makes metals more expensive for holders of other currencies, weighing on prices.

FUNDAMENTALS

* SHFE COPPER: The most-traded April copper contract on the Shanghai Futures Exchange slipped 1.4 percent to close at 52,590 yuan ($8,311.34) a tonne, posting a 1 percent drop for the month.

* LME COPPER: Three-month copper on the London Metal Exchange edged down 0.4 percent to $6,991.50 a tonne by 0712 GMT, extending Tuesday's 1.3 percent dip to slip below the $7,000 a tonne mark.

* USD: The dollar stood near a three-week high against a basket of currencies on Wednesday after Fed Chairman Powell's upbeat views on the U.S. economy bolstered bets on further interest rate hikes this year.

* CHINA: Growth in China's manufacturing sector in February slowed more than expected to the weakest in over 1-1/2 years as Lunar New Year holidays disrupted business activity and tougher pollution rules curtailed factory output.

* OTHER METALS: Shanghai zinc, nickel and lead ended down 1 percent, 0.4 percent and 1.5 percent, respectively. Only aluminium closed in positive territory, rising 0.6 percent, although it still registered a drop of 1.9 percent for the month.

* ALUMINIUM: London aluminium was also up, by 0.2 percent, "supported by LME warrant cancellations once more and the widening backwardations in the nearby spreads," Malcolm Freeman, CEO of Kingdom Futures, wrote in a note. Cancelled warrants are orders to take metal out of a warehouse.

* ALUMINIUM: The U.S. Commerce Department said on Tuesday it had made a final determination that imports of aluminium foil from China are being sold in the United States at less than fair value and producers are benefiting from subsidies from Beijing.

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MARKETS NEWS

* Asian shares extended losses on Wednesday as weak Chinese Japanese manufacturing data revived worries about global growth amid anxiety over faster rate rises in the United States.

PRICES

BASE METALS PRICES 0712 GMT Three month LME copper 6991.5 Most active ShFE copper 52580 Three month LME aluminium 2151.5 Most active ShFE aluminium 14320 Three month LME zinc 3480 Most active ShFE zinc 26400 Three month LME lead 2546 Most active ShFE lead 19200 Three month LME nickel 13825 Most active ShFE nickel 105010 Three month LME tin 21665 Most active ShFE tin 148070

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 1064.32 LME/SHFE ALUMINIUM LMESHFALc3 -1479.46 LME/SHFE ZINC LMESHFZNc3 338.92 LME/SHFE LEAD LMESHFPBc3 -234.46 LME/SHFE NICKEL LMESHFNIc3 1647.57

($1 = 6.3275 Chinese yuan)

(Reporting by Tom Daly; Editing by Tom Hogue and Subhranshu Sahu)