MARKETS-METALS (UPDATE 4) * China new bank lending slowed in March * Euro rally fades, U.S stocks to open lower * Coming up: U.S. IBD April consumer confidence data, due at 1400 GMT (Updates with official prices, adds details/comment) By Maytaal Angel LONDON, April 13 (Reuters) - Copper prices fell further from 20-month highs on Tuesday as investors worried the rally above $8,000 had been overdone, especially as top consumer China curbs bank lending. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,875 a tonne in official midday rings from a close of $7,905 at the close on Monday, when robust import figures from China sent prices to a 20-month high of $8,043.75. "Factors which lead financial investors to buy commodities are a bit negative. China is trying to curb lending. The euro is giving back some of the gains made .... stock markets are cautious in the U.S.," said Peter Fertig, analyst at Quantitative Commodity Research. The euro fell to a session low versus the dollar on Tuesday after a Greek Treasury bill auction showed the market still required a high premium to hold Greek assets. A stronger dollar makes dollar-priced metals more expensive for non-U.S. investors. U.S. stock markets, seen by some as a proxy for economic growth, were poised to open lower a day after aluminium producer Alcoa reported in-line quarterly results but lower-than-expected revenues. Meanwhile in China, the world's top metals consumer, the pace of new bank lending slowed last month to 510.7 billion yuan ($75 billion) from February's total of 700.1 billion, as Beijing renewed efforts to stop the world's third-largest economy from bubbling over. "The concern is out of China, loan growth is decelerating, the Chinese government is becoming more disciplined, reducing liquidity. That is weighing on metals despite the fact that things are looking positive overall," said Daniel Brebner, analyst at Deutsche Bank. Investors are also eyeing potential currency reform in China. President Hu Jintao told U.S. President Barack Obama that China will chart its own course in reforming the yuan, reinforcing the view that Beijing is likely to tip-toe, not leap, towards appreciation. "There is considerable speculation over the impact of a stronger Renminbi could be on prices, we would expect it to encourage Chinese buying activity as it will give them more purchasing power," said Fairfax analysts in a note. Market attention is now turning to Chinese data due around April 15, that include GDP, retail sales, industrial production and fixed asset investment LIGHTWEIGHT Among other industrial metals, aluminium was last bid at $2,400 from $2,417. The lightweight metal was back in the limelight after UC RUSAL confirmed plans first reported in September that it wanted to launch a physically-backed exchange traded fund. "It's not new news at all, but that kind of newsflow continues to underscore support for aluminium. It's bullish because it represents in a more explicit way investor participation in metals," said Brebner. LME aluminium stocks fell 5,000 tonnes but held near record levels at 4.6 million tonnes. Most of that metal, however, is tied up in financing deals and not available to the market. Also underpinning aluminium, India's state-run National Aluminium Co Ltd (NALCO) sold 9,000 tonnes of aluminium ingots at a premium of $82.28 a tonne over the average LME cash price on a cost, insurance and freight basis. In other metals traded, zinc traded at $2,398 from $2,425, battery material lead was last bid at $2,330 from $2,359, and nickel trded at $25,605 from $25,780. Bucking the downtrend, tin, used in electrical solder, traded up at $18,730 from $18,700, haveing earlier hit $18,980, its highest since mid-September 2008. "The demand outlook from the electronic sector is more positive, there's been a lot more fundamental interest in tin," said Societe Generale analyst David Wilson. Metal Prices at 1215 GMT Metal Last Change Percent Move End 2009 Ytd Percent move LME Alum 2400.00 -6.00 -0.25 2230.00 7.62 LME Cu 7866.00 -39.00 -0.49 7375.00 6.66 LME Lead 2328.00 -30.50 -1.29 2432.00 -4.28 LME Nickel 25550.00 -230.00 -0.89 18525.00 37.92 LME Tin 18600.00 -100.00 -0.53 16950.00 9.73 LME Zinc 2390.00 -35.00 -1.44 2560.00 -6.64 SHFE Alu 16845.00 -25.00 -0.15 17160.00 -1.84 SHFE Cu* 62130.00 -420.00 -0.67 59900.00 3.72 SHFE Zin 19145.00 -170.00 -0.88 21195.00 -9.67 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

Source