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METALS-LME copper prices turns positive as dollar loses ground

(Adds Shanghai closing prices, updates London prices) BEIJING, March 16 (Reuters) - London copper prices recovered from early falls to trade higher on Friday, with the dollar giving up some of Thursday's gains following reports of another shake-up in the White House. U.S. President Donald Trump has decided to remove H.R. McMaster as his national security adviser, the Washington Post reported, taking the dollar lower against the yen. A weaker dollar makes metals cheaper for holders of other currencies and can support prices. Incoming White House economic adviser Larry Kudlow has said he would like the dollar to be stronger. Describing copper as the "lightning rod for global investor changes," ANZ said investors "are likely to remain cautious" ahead of next week's Federal Reserve meeting, at which the U.S. central bank is expected to raise interest rates for the first time this year.

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange was up 0.5 percent at $6,953 a tonne at 0730 GMT, after falling by 0.5 percent earlier in the session. It was on course for a 0.1 percent weekly drop.

* SHFE COPPER: The most-traded May copper contract on the Shanghai Futures Exchange closed down 0.5 percent at 52,120 yuan ($8,238.88) but posted a weekly gain of 1.1 percent.

* COPPER: China's refined copper output in January and February rose 10.3 percent year-on-year to 1.48 million tonnes, according to official data released on Friday.

* SHFE ALUMINIUM: The most traded May aluminum contract closed up 0.1 percent at 13,995 yuan a tonne. Deliverable ShFE aluminum inventories rose by 87,303 tonnes to a record high of 934,216 tonnes, according to exchange data released on Friday. U.S. DOLLAR: The dollar index versus a group of six major currencies slipped 0.1 percent to 90.014 after climbing 0.5 percent the previous day.

* DRC: The Democratic Republic of Congo is considering adding copper to its list of strategic minerals in a move that would extract higher fees from mining companies, an adviser to the prime minister said on Thursday.

* TARIFFS: U.S. Commerce Secretary Wilbur Ross and European Trade Commissioner Cecilia Malmstrom have agreed to meet next week in an attempt to resolve a deepening dispute over trade tariffs, a European Commission source said on Thursday.

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MARKETS NEWS

* Asian stocks slid on Friday as reports of more chaos in the Trump administration tested investors' nerves, already frayed by fears that U.S. tariffs could hurt the global economy and trigger a trade war.

PRICES

BASE METALS PRICES 0730 GMT Three month LME copper 6953 Most active ShFE copper 52120 Three month LME aluminum 2091 Most active ShFE aluminum 13990 Three month LME zinc 3235.5 Most active ShFE zinc 24910 Three month LME lead 2395 Most active ShFE lead 18540 Three month LME nickel 13700 Most active ShFE nickel 103680 Three month LME tin 20950 Most active ShFE tin 144680

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 957.73 LME/SHFE ALUMINIUM LMESHFALc3 -1360.69 LME/SHFE ZINC LMESHFZNc3 693.02 LME/SHFE LEAD LMESHFPBc3 142.29 LME/SHFE NICKEL LMESHFNIc3 897.29

($1 = 6.3261 Chinese yuan)

(Reporting by Tom Daly; editing by Joseph Radford and Subhranshu Sahu)