* China output rises; producer inflation high, peaking * Growth seen slowing, but no double dip * Technical outlook bright for copper [TECH/C] * Coming Up; U.S. retail sales for May: 1230 GMT (Updates prices, adds details) By Nick Trevethan SINGAPORE, June 11 (Reuters) - Shanghai copper futures rallied 1.5 percent on Friday ahead of a three-day holiday next week, chasing gains in London which edged higher after data from China and India. Commodities as measured by the Reuters/Jefferies CRB .CRB have rallied 2.5 percent in the past three days on upward revisions of Japanese growth rates, strong Chinese exports, a successful Spanish bond auction and a fall in initial U.S. jobless claims. The latest numbers to exercise investor minds were Chinese inflation and output data, and output data from India. "I don't think we need to worry about China. Output is robust, exports are very strong and they are still buying raw materials on the world market," a dealer in Singapore said. "Inflation is high but the view seems to be that it has peaked. Growth rates will slow some, but it doesn't look like demand will come crashing down around our ears." Copper output showed a 17.8 percent rise to 398,000 tonnes in May from the previous year, which traders said when taken with falling inventories in London and Shanghai exchange warehouses and stable imports, suggested demand remained firm in the Middle Kingdom. China's consumer inflation accelerated to a 19-month high in the year to May, while industrial output and fixed-asset investment growth moderated, sending mixed signals about the temperature of the world's third-largest economy. [ID:nTOE65907H] For a graphics suite of Chinese macro data: here "PPI may have peaked in May. CPI may still move up a little bit further in June or July due to a low base, but it is obvious that inflation pressure in China has greatly eased," said Zhang Lei, an economist with Bohai Securities in Tianjin. "The overall economy will see a modest slowdown as well, but there won't be a sharp decline in growth. In other words, the possibility of a double-dip is very small." India's industrial output INIP=ECI rose by a faster-than-expected 17.6 percent in April from a year earlier on strong consumer demand and government spending. [ID:nBMA007791] Three-month copper on the London Metal Exchange CMCU3 ticked up by $5 to $6,415 a tonne by 0711 GMT. Copper rallied 1.1 percent, or $70, in the previous session when it touched its highest in almost a week, at $6,446. On the week, copper is on track for a 2.2 percent rise, it biggest since early April. "The data flow we have been seeing has been very positive and recent price corrections have not been matched by a deterioration in the numbers," Barclays Capital analyst Yingxi Yu said. "Thursday's trade data showed that the environment in China is positive and the excess supply people have worried about might not be as bad as they think. We see signs that copper imports may surprise on the upside for the year." Benchmark third-month Shanghai copper SCFc3 rose 1.5 percent to close at 51,450 yuan, ending the week 3 percent weaker. Other Shanghai metals also gained -- zinc SZNc3 and aluminium SAFc3 both rose more than 1 percent, while output data showed production of aluminium hit a record 1.416 million tonnes in May over 1.37 million tonnes in April. May output surpassed the previous record seen in December last year. [ID:nTOE65907H] The Shanghai Futures Exchange said it will temporarily raise its minimum margin requirement and extend trading bands on all futures contracts around the three-day Dragon Boat Festival at the weekend. [ID:nTOE65906V] In industry news, Mexican miners clashed briefly with federal police on Thursday at the Cananea copper mine, raising tensions which could complicate owner Grupo Mexico's efforts to reopen the pit after breaking a nearly three-year-long strike. [ID:nN10264269] Longer-term supply may also be threatened after news emerged that a province in the Philippines is almost certain to ban open pit mining due to environmental concerns, threatening development of one of Southeast Asia's richest copper-gold mines. [ID:nSGE6590LL] Base metals prices at 0711 GMT Metal Last Change Pct Move End 2009 YTD pct chg LME Cu 6415.00 5.00 +0.08 7375.00 -13.02 SHFE Cu* 51450.00 760.00 +1.50 59900.00 -14.11 LME Alum 1955.00 6.00 +0.31 2230.00 -12.33 SHFE Alum* 14565.00 160.00 +1.11 17160.00 -15.12 COMEX Cu** 285.55 0.00 +0.00 332.75 -14.18 LME Zinc 1740.00 20.00 +1.16 2560.00 -32.03 SHFE Zinc 14295.00 175.00 +1.24 21195.00 -32.55 LME Nickel 18950.00 5.00 +0.03 18525.00 2.29 LME Lead 1690.00 6.00 +0.36 2432.00 -30.51 LME Tin 16500.00 -150.00 -0.90 16950.00 -2.65 LME/Shanghai arb^ -184 Dollar/yuan 6.8304 \ 6.8310 ** 1st contract month for COMEX copper * 3rd contact month for SHFE aluminium, copper and zinc ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month (Editing by Himani Sarkar)

Source