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?
        
    * For the top stories in metals and other news, click       
 or     
        
    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)
  
 
 



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