METALS-Copper falls as oil-driven inflation fears take on strong China data

March 16 (Reuters) - Copper fell on Monday, as heightened inflation fears amid rising oil prices overpowered positive cues from estimates-beating economic and investment data from China.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 closed daytime trading down 0.87% at 99,720 yuan ($14,452.59) a metric ton, after falling as much as 1.85% earlier.

The benchmark three-month copper contract on the London Metal Exchange CMCU3, meanwhile, dipped 0.16% to $12,760 a ton as of 0730 GMT.

China's industrial output rose 6.3% year-on-year in January-February, retail sales jumped 2.8%, and fixed asset investment rose 1.8%, according to data from the National Bureau of Statistics on Monday. All readings beat estimates.

Copper's loss came as Brent futures LCOc1 remained above $100 a barrel, with the U.S.-Israeli war on Iran entering its third week. It added to inflation fears as U.S. consumer spending rose in January.

The red metal is expected to face downward pressure driven by a stronger U.S. dollar =USD, a delay in the Federal Reserve rate cut and weak demand resumption in China after the Lunar New Year break, analysts at Citi said in a note.

They said the long-term outlook for copper remained bullish, while near-term prices could find support from post-Lunar New Year restocking, especially from the power grid sector.

Aluminium was also under pressure from oil-driven inflation concerns, but prices on the Shanghai and London exchanges diverged.

SHFE aluminium contract SAFcv1 dropped 0.45% to 25,170 yuan a ton, and the London benchmark three-month aluminium CMAL3 rose 0.48% to $3,456.

Fears of a supply shortage continued to support prices amid the war.

Aluminium Bahrain ALBH.BH said on Sunday that it was shutting 19% of its capacity after declaring force majeure on March 4. India's Hindalco Industries HALC.NS halted production of an aluminium product, citing force majeure at certain Mideast gas suppliers.

Australia's South32 S32.AX said on Monday that it had placed its Mozal aluminium smelter in Mozambique on care and maintenance after failure.

Elsewhere on SHFE, zinc SZNcv1 dropped 1.30%, lead SPBcv1 declined 1.63%, nickel SNIcv1 shed 1.54%, and tin SSNcv1 lost 3.18%.

Among other LME metals, zinc CMZN3 dropped 0.68%, lead CMPB3 pulled back 0.60%, and nickel dipped 0.21%. Tin CMSN3 gained 0.47%.

($1 = 6.8998 Chinese yuan renminbi)