* Aluminium stocks see largest one-day influx since August
* China's SRB launches aluminium sale tender
* COMING UP: U.S. October PPI figures at 1330 GMT
(Adds fresh comment/details, pvs SINGAPORE )
By Melanie Burton
LONDON, Nov 16 (Reuters) - Copper prices fell on Tuesday weighed down by worries top metals user China plans further steps to cool down its overheated economy and as the country reaffirmed its willingness to sell metals back to the market.
Benchmark copper on the London Metal Exchange traded at $8,510 at 1055 GMT, down from a close of $8,645 on Monday. The metal used in power and construction was nearing one-week lows from Monday at $8,460 a tonne, but remains within five percent of recent record highs at $8,966 a tonne.
China's State Reserves Bureau, which stockpiled a range of base metals in the first half of 2009, announced a tender for aluminium sales, on the heels of similar tenders for zinc and lead.
The SRB will offer 117,000 tonnes of aluminium ingots for sale at auctions on Nov. 23-24. It follows a previous auction of 96,000 tonnes of aluminium from state reserves on Nov. 1-2.
Daniel Major, analyst with RBS, said the tender showed China's commitment to keeping a lid on inflation across the spectrum of assets, including metals.
"(Interest rate) Hikes have the potential to cause sales from private sector (metal) holdings because they raise the opportunity costs of holding non-yielding assets like commodities... while sales into the market should put downwards pressure on pricing."
The euro was close to its lowest in nearly seven weeks versus the dollar as Irish debt problems knocked sentiment, although the U.S. currency was off its highs.
A robust dollar makes metals more expensive for holders of other currencies.
In economic news that could impact metals via currencies later, U.S. October Producer Price Index data is due at 1330 GMT, followed by October industrial production, and a housing sector index at 1415 GMT.
ALUMINIUM STOCKS RISE
LME aluminium stocks saw the biggest one-day rise since mid-August, with 36,027 tonnes warranted in Detroit and over 10,000 tonnes registered in Liverpool, reflecting dampening demand for the metal as the year-end approaches.
Cancelled warrants, or the metal tagged for removal, however also rose 17,600 tonnes with the majority seen in bonded warehouses in Tyne & Wear. "Talk is that it's fresh material - could be from producers, or merchants as they destock ahead of year end -- but it is also third Wednesday, so we could have people delivering in against that," said one metals trader in London.
As this week is the prime settlement date for the November contract, physical metal is often delivered in to LME inventories to offset short futures positions. LME aluminium stood at $2,363.40, down from the $2,400 close.
Tightness continues in nearby copper prices, reflecting scarcity of nearby supply, highlighted by a strike in Chile. The premium for cash material jumped to $25.50 against the benchmark contract, the highest in over two years.
A strike continues at Chile's Collahuasi, the world's No. 3 copper mine for a 12th day.
Stainless steel metal nickel which fell to a two-month low on Monday under $22,000, was at $22,152 a tonne, down from $22,350. Global miner Xstrata will restart its Sinclair nickel mine as the economy picks up. Zinc fell another three percent to $2,262.50, down from $2,338 and having tumbled almost 10 percent since Thursday, but losses were less pronounced in battery material lead which fell to $2,403, from $2,455.
Tin sank to $25,300 from $25,900.
Metal Prices at 1058 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2009 Ytd Percent
move COMEX Cu 387.45 -5.05 -1.29 334.65 15.78 LME Alum 2395.00 -5.00 -0.21 2230.00 7.40 LME Cu 8580.00 -65.00 -0.75 7375.00 16.34 LME Lead 2450.00 -5.00 -0.20 2432.00 0.74 LME Nickel 22350.00 0.00 +0.00 18525.00 20.65 LME Tin 25300.00 -600.00 -2.32 16950.00 49.26 LME Zinc 2330.00 -8.00 -0.34 2560.00 -8.98 SHFE Alu 16655.00 -140.00 -0.83 17160.00 -2.94 SHFE Cu* 64310.00 -620.00 -0.95 59900.00 7.36 SHFE Zin 18255.00 -450.00 -2.41 21195.00 -13.87 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
