HANOI, June 1 (Reuters) - Copper prices rose on Tuesday, helped by recovering global demand, supply threats from a labour dispute in Chile and a weaker dollar.

Three-month copper on the London Metal Exchange was up 0.5% to $10,306 a tonne at 0706 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange was up 0.6% to 74,160 yuan ($11,632.94) a tonne.

"Prices have increased on the back of a firm uptick in demand as the world outside of China recovers, increased money supplies and supply issues in both China and Chile," said commodities broker Anna Stablum of Marex Spectron in a note.

"In China, power issues have cut some smelter production," she said.

A strike by workers for BHP's Escondida and Spence copper mines in Chile entered its fifth day on Monday as the union awaited a decision by labour authorities over whether substitute workers the company called in are legal.

The dollar traded under pressure as investors waited for the next batch of U.S. and European data to shape the outlook on interest rates.

A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.

FUNDAMENTALS

* LME aluminium rose 1% to $2,507 a tonne, nickel increased 1.5% to $18,390 a tonne and zinc advanced 0.8% to $3,083.50 a tonne.

* ShFE aluminium increased 0.3% to 18,875 yuan a tonne, nickel was up 2.1% to 134,920 yuan a tonne while tin shed 1.3% to 206,000 yuan a tonne.

* China plans to strengthen controls in high-emission industries such as aluminium to promote low-carbon developments, the environment ministry said on Monday.

* China's factory activity growth slowed slightly in May as raw material costs grew at their fastest pace in over a decade, weighing on the output of small and export-oriented firms.

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($1 = 6.3750 yuan) (Reporting by Mai Nguyen Editing by Ramakrishnan M. And Mark Potter)