MARKETS-METALS (UPDATE 4) * Planned aid deal for Greece bigger than first thought * Risk sentiment still fragile but fundamentals firm * Coming up: U.S. house subcommittee hearing on Greek debt crisis, due 1400 GMT (Recasts, updates with official prices) By Maytaal Angel LONDON, April 29 (Reuters) - Copper edged up on Thursday as fears over sovereign debt in the Eurozone ebbed slightly and investors eyed improved demand prospects, especially in the United States. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,425 in official midday rings from a close of $7,400 on Wednesday. "Risk sentiment has taken a dent (but) fundamentals will help support, demand for all metals is improving globally, not just in China," said Gayle Berry, analyst at Barclays Capital. "Inventory trends are turning positive; outside of the Eurozone economies data is positive." The euro rose versus the dollar on Thursday on hopes a bail-out plan for debt-stricken Greece would be finalised soon. A weaker dollar makes dollar priced metals cheaper for non-U.S. investors. On Wednesday, the euro fell to a one year low versus the dollar after Standard & Poor's cut credit ratings for Spain by one notch, a day after slashing credit ratings for Greece to junk status and downgrading Portugal. The move weighed heavily on metals as fears of debt contagion in the Eurozone spread, but the complex later recovered after the U.S. Federal Reserve kept rates on hold and gave an upbeat assessment of the U.S. economy. "We remain loyal to our stronger for longer mantra, with the fundamental outlook over the next two years indicating a strong argument for higher prices in copper, zinc and lead," said RBC Capital Markets in a note. "However over the next few months the market is likely to have to contend with apparent demand deterioration in China and oversupply in a number of the metals, which in the current risk-adverse climate could well lead to further price falls in the weeks ahead." STRUCTURAL Copper prices have been supported this year by buying from the world's top copper consumer China, by investment money pouring into industrial metals in the hope of even more rises in Chinese demand and expectations of structural supply tightness in the copper market in 2011. But worries are growing over further moves by Beijing to cool its booming property market. Earlier this month China raised mortgage rates and down payment requirements to cool growth in the property sector. On the plus side, however, LME copper stocks continue to fall, indicating demand for the metal used in power and construction is improving. Latest data showed copper stocks fell 1,475 tonnes to 502,550 tonnes. Stocks have fallen 9 percent from 555,075 in mid-February. Among other industrial metals, aluminium traded at $2,224 from $2,190. LME stocks of the metal used in transport and packaging fell 4,750 tonnes but remained near record levels at 4.5 million tonnes. South Korea has issued a tender to buy 3,000 tonnes of non-Western origin primary aluminium ingot for shipping by July, the state-run Public Procurement Service said on its web site (www.g2b.go.kr). Stainless steel making ingredient nickel, the best performer on the LME this year, was last bid at $25,770 from $25,650. Russian miner Norilsk Nickel boosted nickel production in the first quarter of 2010 to 70,180 tonnes from 69,357 tonnes in the same period of last year, the company said on Thursday. Zinc traded at $2,342 from $2,330, battery material lead was last bid at $2,248 from $2,235, and tin traded at $18,450 from $18,000. The global zinc market will be in a surplus of 418,000 tonnes this year, while the global lead market will be in a surplus of just under 100,000 tonnes this yearthe Lisbon-based International Lead and Zinc Study Group (ILZSG) said on Thursday. Metal Prices at 1209 GMT Metal Last Change Percent Move End 2009 Ytd Percent move #VALUE! LME Alum 2214.00 24.00 +1.10 2230.00 -0.72 LME Cu 7435.00 35.00 +0.47 7375.00 0.81 LME Lead 2251.00 16.00 +0.72 2432.00 -7.44 LME Nickel 25710.00 60.00 +0.23 18525.00 38.79 LME Tin 18425.00 425.00 +2.36 16950.00 8.70 LME Zinc 2334.00 -27.00 -1.14 2560.00 -8.83 SHFE Alu 16130.00 50.00 +0.31 17160.00 -6.00 SHFE Cu* 58670.00 370.00 +0.63 59900.00 -2.05 SHFE Zin 18420.00 90.00 +0.49 21195.00 -13.09 ** 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 Maytaal Angel. Editing by Keiron henderson)

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