(Updates with prices at 1525 GMT and dollar after U.S. data)

By Eric Onstad

LONDON, Dec 6 (Reuters) - Copper prices touched a

three-week high on Friday, boosted by declines in Chinese

inventories and concerns about supply of raw materials after a

treatment charge deal was agreed.

Three-month copper on the London Metal Exchange (LME)

was up 0.3% at $9,104 per metric ton by 1525 GMT, having

touched $9,178.50, the strongest since Nov. 15.

News on Thursday that Chilean miner Antofagasta and Jiangxi

Copper agreed to significantly lower copper concentrate

processing fees for 2025 highlighted concerns about sufficient

availability of copper concentrate in the spot market.

"For 2025, we'll probably see smelters struggle to make

profits at the new TC/RCs (treatment and refining charges).

Supply issues will start to bubble up in the second half of

2025," said Daria Efanova, head of research at broker Sucden

Financial.

Some investors were closing out positions ahead of the

year-end and the rising copper price sparked some short-covering

by speculators, Efanova added.

Although copper has shed 10% since touching a four-month

peak of $10,158 on Sept. 30, it has rebounded after sinking to

$8,904 on Monday.

The market has also been bolstered by a steady erosion of

inventories on the Shanghai Futures Exchange (SHFE), which

registered another 10% decline in weekly data on Friday,

bringing the total fall since early June to 71%.

The most-traded January copper contract on SHFE

closed 0.2% higher at 74,730 yuan ($10,293.25) a ton and gained

1% for the week.

Efanova said the copper market was also focused on the

dollar, which has recently been weakening, making commodities

priced in the U.S. currency less expensive for buyers using

other currencies.

The dollar index was slightly firmer on Friday

following data that showed a rise in the unemployment rate that

should allow the Federal Reserve to cut interest rates again

this month.

Among other metals, LME aluminium shed 1.7% to

$2,594.50 a ton, zinc fell 1.8% to $3,064, lead

dropped 1.2% to $2,072.50, tin edged down 0.4% to

$29,050, while nickel advanced 0.8% to $16,095.

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