By Naveen Thukral
SINGAPORE, Aug 7 (Reuters) - London copper edged higher on Tuesday, aided by a weaker dollar, although escalating trade tensions between the United States and China kept risk appetite in check.
Three-month copper on the London Metal Exchange was up 0.5 percent at $6,161.50 a tonne by 0701 GMT. On the Shanghai Futures Exchange, the most-traded copper closed up 0.2 percent at 49,480 yuan ($7,236) a tonne.
On Friday China unveiled tariffs on 5,207 items imported from the United States, with the extra levies ranging from 5 percent to 25 percent, which analysts say could eventually undermine growth.
"Ongoing concerns about the impact of the trade conflict between U.S. and China continue to weigh on sentiment," ANZ said in a note.
"This comes despite threats of supply disruptions in Chile. Workers at Escondida are on the verge of striking this week after negations with management at the mine broke down."
* NICKEL: Shanghai nickel climbed 2.1 percent to settle at 112,630 yuan a tonne, supported by a rally in Chinese steel prices to their strongest since April 2012 amid production curbs.
* ESCONDIDA: Miner BHP said it had formally requested a period of government mediation with the union at its Escondida copper mine in Chile, the world's largest, prompting the union to postpone the start of a strike approved by workers.
* ALUMINA: Four more cities in northeast China's Liaoning province have abandoned proposed alumina projects amid public environmental concerns, after Chaoyang last week scrapped plans to build the world's biggest alumina refinery. The cancellations - announced by the cities of Fengcheng, Fuxin, Gaizhou and Huludao - mean projects designed to produce over 18.5 million tonnes of alumina will not go ahead as planned.
* MARKETS: The dollar slipped 0.2 percent versus a basket of major currencies, losing initial support from simmering U.S.-China trade tensions. But a rebound in battered Chinese stock markets helped lift Asian equities.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 6.8385 Chinese yuan)
Reporting by Naveen Thukral Additional reporting by Manolo Serapio Jr. in MANILA Editing by Richard Pullin and Subhranshu Sahu