METALS-Metals trade mixed; zinc at over 7-week high on Nyrstar's output cut

SHANGHAI, March 13 (Reuters) - London metals traded mixed on Thursday as a cooler-than-expected U.S. inflation print bolstered rate cut expectations, while zinc surged to a more than seven-week high on Nyrstar cutting production in Australia. U.S. consumer price index in February increased less than expected, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports. U.S. President Donald Trump lashed out at Canada on Tuesday over its retaliation for his prior tariffs by doubling the import duty on Canadian steel and aluminum to 50%, while keeping rates for all other countries at 25% and rescinding prior exemptions, exclusions and quotas. Three-month zinc on the London Metal Exchange (LME) CMZN3 gained 0.8% to $2,946.5 a metric ton as of 0234 GMT. It scaled a seven-week peak earlier in the session after Nyrstar on Wednesday announced 25% production cuts at its Hobart zinc operations in Australia from April, sending prices higher. The company owned by commodity trader Trafigura said its Australian assets continue to face significant financial challenges due to worsening conditions in raw material markets, negative treatment charges and increased costs. The zinc smelter in Hobart, which Nyrstar bills as one of the world's largest, has a production capacity of about 260,000 metric tons a year, the company said in an email, without providing the latest output figures. LME copper CMCU3 gained 0.5% to $9,805 a ton, LME aluminium CMAL3 remained flat at $2,702.5 a ton, lead CMPB3 lost 0.1% to $2,079, tin CMSN3 eased 0.1% to $33,380 and nickel CMNI3 was unchanged at $16,635. SHFE copper SCFcv1 climbed 1.25% to 78,760 yuan ($10,892.44) a metric ton, SHFE aluminium SAFcv1 rose 0.1% to 20,960 yuan a ton, zinc SZNcv1 added 0.9% to 24,155 yuan, tin SSNcv1 advanced 0.6% to 265,500 yuan, lead SPBcv1 jumped 0.8% to 17,580 yuan and nickel SNIcv1 soared 0.8% to 133,590 yuan. ($1 = 7.2307 Chinese yuan renminbi) (Reporting by Violet Li and Mei Mei Chu; Editing by Sumana Nandy) ((Violet.Li@thomsonreuters.com;)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))