By Melanie Burton
MELBOURNE, Aug 21 (Reuters) - London zinc rose to its highest price in a decade on Monday and nickel also rallied as investors ploughed into metals used by China's steel sector, seeing robust demand even as capacity is constrained by Beijing's drive to reform bloated industries.
FUNDAMENTALS
* London Metal Exchange (LME) zinc CMZN3 hit the highest since Oct. 2007 at $3,163.50 a tonne, up around 1 percent. LME nickel CMNI3 , used in the stainless steel sector, rallied by 2.2 percent to $11,220 a tonne.
* London Metal Exchange copper CMCU3 edged up 0.3 percent to $6,506 a tonne by 0217 GMT, heading back towards last week's $6,580 peak, the highest since Nov. 2014.
* Shanghai Futures Exchange copper SCFcv1 showed modest 0.3 percent gains. SHFE nickel SNIcv1 rallied more than 4 percent while SHFE zinc SZNCV1 was up 2 percent.
* China's steel and its raw materials have rallied amid a firm outlook for demand in the world's top consumer. nL4N1L32QJ
* Confidence at Japanese manufacturers rose to its highest level in a decade in August led by materials producers, a Reuters poll showed, a further sign of broadening recovery in the economy. Cash aluminium has soared against the benchmark aluminium contract, reflecting a rush on immediate supply. Cash aluminium traded at a $9.50 premium against the benchmark, up from a $21 discount in early August. CMAL0-3
* Limited access to the giant Grasberg copper mine in eastern Indonesia is expected to resume on Monday, its operator said, after hundreds of former workers blockaded the site and clashed with police. Protesters in Peru have removed barriers on a road used by MMG Ltd 1208.HK to move its copper concentrate from its Las Bambas mine to port for shipping, after the government declared a state of emergency in the region, a representative of the ombudsman's office said Friday. Speculators in Comex copper boosted their record long position by 8,063 contracts to 120,175 in the latest week, data from the U.S. Commodity Futures Trading Commission showed.
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TOP/MTL or MET/L
MARKETS NEWS
* Asian shares were little changed in early Monday trade as investors remained unconvinced about U.S. President Donald Trump's ability to fulfil his economic agenda, even as the departure of controversial policy strategist Steve Bannon raised hopes of some progress. MKTS/GLOB
DATA AHEAD (GMT)
* 1230 U.S. National activity index Jul
PRICES
Three month LME copper
CMCU3
Most active ShFE copper
SCFcv1
Three month LME aluminium
CMAL3
Most active ShFE aluminium
SAFcv1
Three month LME zinc
CMZN3
Most active ShFE zinc
SZNcv1
Three month LME lead
CMPB3
Most active ShFE lead
SPBcv1
Three month LME nickel
CMNI3
Most active ShFE nickel
SNIcv1
Three month LME tin
CMSN3
Most active ShFE tin
SSNcv1
ARBS
LMESHFCUc3
LMESHFALc3
LMESHFZNc3
LMESHFPBc3
LMESHFNIc3
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