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METALS-London zinc climbs for 4th day as inventories slide

BEIJING, Oct 28 (Reuters) - Zinc prices rose on the London Metal Exchange in early Asian trade on Monday, setting the metal used to galvanize steel on course for a fourth straight day of gains as investors worried about inventories at a 12-year low. The global metals industry is gathering in London this week for the annual LME Week event.

FUNDAMENTALS

* ZINC: Three-month zinc on the London Metal Exchange rose as much as 0.4% to $2,519 a tonne and stood at $2,518 as of 0204 GMT. The most traded zinc contract on the Shanghai Futures Exchange rose as much as 2% to a two-week high of 19,165 yuan ($2,712.78) a tonne.

* ZINC STOCKS: Zinc inventories in LME-registered warehouses <MZNSTX-TOTAL> fell to 58,525 tonnes, their lowest since October 2007 after sliding by half this year.

* COPPER: LME copper eased by 0.2% to $5,912.50 a tonne after hitting $5,924 on Friday, the highest since Sept. 16, on concerns over supply disruption in top producer Chile. ShFE copper gained as much as 0.7% to 46,670 yuan a tonne on Monday, also the highest since Sept. 16.

* CHILE: As many as a million Chileans protested peacefully late into the evening on Friday in the capital Santiago, in the biggest rallies yet since violence broke out a week ago over entrenched inequality.

* LITHIUM: Protesters from indigenous communities around Chile's Atacama salt flats have blocked access to lithium operations amid nationwide rallies over inequality, a local leader said.

* TRADE: U.S. and Chinese officials are "close to finalizing" some parts of a trade agreement after high-level telephone discussions on Friday, the U.S. Trade Representative's office and China's Commerce Ministry said.

* CHINA: Profits at China's industrial firms contracted for the second straight month in September as producer prices continued their slide.

* SCRAP: Shares of metals and electronics recycler Sims Metal Management Ltd plunged 15.5% to their lowest since Aug 2016, after the company cited weakness in scrap prices, a slowing global economy and unsold UK inventory as reasons behind a poor outlook.

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MARKETS NEWS

* Asian shares rose on Monday to a three-month high as risk assets got a fillip from hopes of a U.S.-China trade deal as soon as next month while the dollar marked time as focus shifts to a U.S. rate decision.

DATA AHEAD (GMT)

0800 EU Money-M3 Annual Growth Sept

1100 UK CBI Distributive Trades Oct

PRICES

BASE METALS PRICES 0204 GMTThree month LME copper 5913.5Most active ShFE copper 47440Three month LME aluminum 1730.5Most active ShFE aluminum 13830Three month LME zinc 2518Most active ShFE zinc 19085Three month LME lead 2215.5Most active ShFE lead 16765Three month LME nickel 16770Most active ShFE nickel 132920Three month LME tin 16780Most active ShFE tin 139000

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 340.1LME/SHFE ALUMINIUM LMESHFALc3 -11.56LME/SHFE ZINC LMESHFZNc3 -1221.03LME/SHFE LEAD LMESHFPBc3 -1490.79LME/SHFE NICKEL LMESHFNIc3 -5921.86

($1 = 7.0647 Chinese yuan renminbi)

(Reporting by Tom Daly)