* China's official factory PMI rises to 51.3 in August
* Copper slumps 5 percent in August
* GRAPHIC-2018 asset returns: (Recasts with closing prices, stronger dollar)By Eric OnstadLONDON, Aug 31 (Reuters) - Copper and other industrialmetals prices extended losses on Friday, hit by a strongerdollar and more trade tensions between the world's two largesteconomies.
Aluminium, zinc and lead held in positive territory in earlytrading after growth in China's manufacturing sectorunexpectedly picked up in August after a two-month slide. But they lost steam and five out of six main industrialmetals ended open outcry trading in the red on the London MetalExchange.Metals were initially pressured along with global sharemarkets after a report that U.S. President Donald Trump has toldaides he is ready to impose tariffs on $200 billion more inChinese imports.A rebound in the dollar index also weighed on thecomplex in afternoon trading.
Copper has recovered from a 15-month low of $5,773 a tonnetouched on Aug. 15, but is still a long way off its 2018 peak of$7,348 hit in early June.On Friday, benchmark LME copper fell for a thirdstraight session and closed down 1.5 percent at $5,975 a tonne.LME copper slumped 5.1 percent in August after a 4.9 percentslide in July."In the short term, we are going into Q4, which isseasonally stronger. But how far can the rebound go when you'vegot all these worries about trade tensions?" said Robin Bhar,head of metals research at Societe Generale.
"And are we going to get headwinds from the fact thatChinese and global growth may have peaked and are now slowing?"
* COPPER PREMIUMS: Copper has been supported by robustChinese import premiums for physical metal atabout $84 a tonne, down from last week's near two-year high of$86 a tonne.
* INVENTORIES: Copper inventories in warehouses monitored bythe Shanghai Futures Exchange (ShFE) fell 5.9percent from the previous week, while on-warrant LME copperstocks declined 4,600 tonnes to the lowest levelsin about a year, data showed on Friday.
* ZINC: Zinc ended down 0.4 percent at $2,457 atonne, after falling 1.8 percent in the previous session.
* NICKEL: Nickel finished 3.7 percent weaker at$12,800 a tonne as Chinese traders went short on the ShFE, whilein Europe, CTAs (Commodity Trading Advisors) have also beenselling, Alastair Munro at broker Marex Spectron said in a note.
* ALUMINIUM: Aluminium slipped 0.4 percent to$2,124.50 a tonne. "A move beyond $2,171/$2,175 will pave theway for an extended recovery," Stephanie Aymes, head oftechnical analysis at Societe Generale, said in a note.
* PRICES: Lead , the only metal to stay in the black,edged up 0.3 percent to close at $2,078 a tonne, while tin shed 1 percent to $19,000.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in Beijing;
Editing by Mark Heinrich)