* Euro zone debt concerns remain, G7 meeting eyed * Metal fundamentals take backseat as equities fall * COMING UP: U.S. employment report for April at 1230 GMT. (Recasts, adds comments/details, pvs SINGAPORE) By Michael Taylor LONDON, May 7 (Reuters) - Copper fell about 1 percent on Friday as hefty sell-offs in global equities and persistent euro zone debt worries combined to dent sentiment. By 1000 GMT, copper for three month delivery CMCU3 on the London Metal Exchange traded at $6,890.25 a tonne from $6,950 at the close on Thursday and compared with a session low of $6,760. "The fears persist -- this whole risk of contagion hasn't been effectively nullified," said Robin Bhar, an analyst at Credit Agricole. "The market is convinced that the worst-case scenarios being pencilled in are probable." "It's not a fundamentally-driven story at the moment -- it's sheer panic and sheer uncertainty driving these things," he added. "Things got ahead of themselves a few months ago and now you could argue (prices) are at fundamentally justified levels." U.S. stocks fell 9 percent on Thursday as a suspected trading glitch combined with fears of a new credit crisis in Europe led some investors to recall the mayhem in world markets after the collapse of U.S. bank Lehman Brothers in 2008. [.N] Group of Seven finance ministers said they would discuss the Greek bailout later on Friday after Federal Reserve officials expressed concern and the White House said President Barack Obama was watching developments closely. [ID:nSGE64608F] Copper, used in power and construction, fell to $6,632.75 earlier this week -- a level not seen since early February -- as a free-falling euro and intensifying fears of a chain reaction in the euro zone debt crisis increased risk aversion. "The world remains on high alert over the situation in Greece and contagion fears," RBC Capital Markets said in a note. "The recent riots and hysteria in Greece make the austerity plans all the more difficult." "In the U.S, it was another day of sell-offs," RBC analysts added. "We are all hoping for uplifting news with the unemployment data ... but of course any number might be overshadowed by Greece and the EU bailout." The U.S. Labour Department's April employment report is due at 1230 GMT. [ECI/US] Helping stem base metal losses, copper and aluminium stocks in LME warehouses are falling, indicating physical demand for the metals has not dried up. Copper stocks at 490,875 tonnes are down about 60,000 tonnes since the middle of February. <0#LME-STOCKS> Aluminium stocks have fallen to 4.506 million tonnes, since hitting a record high above 4.640 million tonnes in January. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a graphic on metal stocks, click: here ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>A large portion of those aluminum stocks are tied up in financial deals, to release cash for producers and to earn banks higher returns than they would get in money markets. [ID:nGEE5BA277] Aluminium CMAL3, used in transport and packaging, traded at $2,101 versus $2,104. Steel making ingredient nickel CMNI3 traded at $22,050 from $22,000 while battery material lead CMPB3 was at $2,004.75 from $2,001. Zinc CMZN3 traded at $2,089 a tonne from $2,115 and tin CMSN3 was at $17,519 from $17,700. Analysts say funds are showing greater interest in both zinc and lead as both metals had underperformed the LME complex this year, falling around 18 percent respectively. They added that a proposed new mining tax in mineral rich Australia was also being keenly watched as possibly being negative for output but bullish for prices. nAUTAX "The introduction of a so-called super-tax of 40 percent on the profits of mining companies planned by the Australian government for mid 2012 has created quite a stir on financial markets so far," Commerzbank said in a note. "The introduction of the super-tax, in whatever form, should be reflected in the long term in rising production costs and higher commodities prices accordingly," Commerzbank said. Metal Prices at 1004 GMT Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 309.80 -0.55 -0.18 332.75 -6.90 LME Alum 2097.00 -7.00 -0.33 2230.00 -5.96 LME Cu 6900.00 -50.00 -0.72 7375.00 -6.44 LME Lead 2001.00 61.00 +3.14 2432.00 -17.72 LME Nickel 22050.00 50.00 +0.23 18525.00 19.03 LME Tin 17470.00 -230.00 -1.30 16950.00 3.07 LME Zinc 2085.00 -30.00 -1.42 2560.00 -18.55 SHFE Alu 15475.00 -325.00 -2.06 17160.00 -9.82 SHFE Cu* 54500.00 -1430.00 -2.56 59900.00 -9.02 SHFE Zin 16655.00 -600.00 -3.48 21195.00 -21.42 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Michael Taylor; editing by Michael Hogan)

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