MARKETS-METALS (UPDATE 5) * China new bank lending slowed in March * Euro rally fades, U.S stocks open lower (Updates prices, adds comment) By Maytaal Angel and Michael Taylor LONDON, April 13 (Reuters) - Copper prices fell 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. At 1457 GMT, copper for three-months delivery on the London Metal Exchange traded at $7,869 a tonne from $7,905 at the close on Monday, when robust Chinese import data sent prices to a 20-month high of $8,043.75. "There is a constant concern that because China has been so important in leading everybody else out of the pits of hell, that any kind of contractional slowing is going to be treated with a negative frame of mind," said Alex Heath, head of base metals at RBC Capital Markets. "We are (also) sitting here with the sovereign debts of Greece under debate," he said adding that the finances of a group of other European countries were also on a knife-edge. The euro fell to a session low in the New York session, reversing the morning's trend as investors refocused on problems in the euro zone, leaving aside earlier pessimism about U.S. trade data. 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, dipped one day after Alcoa posted in-line earnings but lower-than-expected revenues, as investors sought more evidence to justify the lofty levels on Wall Street. 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 traded at $2,411.50 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 $2,391.25 from $2,425, battery material lead was at $2,335 from $2,359, and nickel traded at $25,616 from $25,780. Bucking the downtrend, tin, used in electrical solder, traded up at $18,680 from $18,700, having 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 1459 GMT Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 357.50 1.55 +0.44 332.75 7.44 LME Alum 2410.00 4.00 +0.17 2230.00 8.07 LME Cu 7858.00 -47.00 -0.59 7375.00 6.55 LME Lead 2329.00 -29.50 -1.25 2432.00 -4.24 LME Nickel 25500.00 -280.00 -1.09 18525.00 37.65 LME Tin 18600.00 -100.00 -0.53 16950.00 9.73 LME Zinc 2388.00 -37.00 -1.53 2560.00 -6.72 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

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