LONDON- Copper held near five-week highs on Thursday on reports that the United States and China had struck a truce on trade ahead of a weekend meeting, but uncertainty over the likelihood of a full deal being reached capped gains.

The South China Morning Post reported on Thursday that Beijing and Washington had agreed to a truce ahead of the two-day meeting, raising hopes for an end to a trade conflict which has sapped metals demand. 

But Capital Economics senior commodities economist Ross Strachan said there were major "fundamental disagreements" between the two sides and that this was unlikely to be fully hashed out at the meeting in Japan.

"We are cautious on the likelihood of a deal this weekend, and how sustainable any deal would be as well," he said, adding that there was "some degree of nervousness to not over-read the signals".

Hopes for a resolution to the damaging tit-for-tat trade war had boosted prices for the metal used in power and construction on Wednesday to a five-week high of $6,063.50 a tonne.

Benchmark copper on the London Metal Exchange (LME) gained 0.1% to $5,993 per tonne by 1115 GMT.

TRADE WAR: A Chinese commerce ministry spokesman said on Thursday that China opposes U.S. abuse of export controls and urges the United States to return to a track of cooperation, days before the countries' leaders are set to meet for trade talks. 

STRIKE: Unions at Chile's Chuquicamata mine have asked Codelco, the world's largest copper producer, to resubmit the offer their workers voted down last weekend, a union leader said, amid a nearly two-week strike that has docked output. 

Global refined copper output showed a shortage of 32,000 tonnes in the first three months of the year compared with a 81,000 tonne surplus a year earlier. 

CHINA PREMIUMS: Chinese Yangshan import premiums slipped for a second session to $57.50 per tonne over LME cash, still above last month's two-year low of $47. 

CHINA INDUSTRIAL: Bolstered by improving sales and better margins, profits for China's industrial companies rose in May, bucking a months-long downtrend. 

INSPECTIONS: China will soon begin dispatching teams of inspectors to its provinces and regions in a new nationwide probe into environmental compliance, with the performance of state-owned firms one of its big priorities, an official said. 

China's war against pollution has seen capacity shutdowns in its metals industry, including for aluminium and lead, tightening markets and supporting prices.

OTHER PRICES: Aluminium fell 0.5% to $1,811 per tonne, zinc eased 0.9% to $2,484, lead CMPB3 was steady at $1,929 and tin  added 0.2% to $18,825.

Nickel added 2.1% to a 10-week high of $12,755 a tonne.

(Reporting by Zandi Shabalala; Editing by Jan Harvey) ((zandi.shabalala@tr.com; +44 207 542 5937; Reuters Messaging: zandi.shabalala.thomsonreuters.com@reuters.net))