* ADB warns of "greater downside risks" for Asian economies * Euro eases after S&P warns of ratings cuts * Markets cautious ahead of EU summit, ECB meeting By Susan Thomas LONDON, Dec 6 (Reuters) - Copper fell on Tuesday after ratings agency Standard & Poor's warned of a mass downgrade of euro zone countries if European leaders fail to deliver a deal to solve the region's debt crisis this week. The Asian Development Bank also warned that Asia faces "much greater" downside risks compared with a few months ago. London Metal Exchange (LME) three-month copper was $7,790 per tonne in official rings from $7,940 at the close on Monday. The ups and downs of Europe's debt crisis and fears of a slowdown in big metals consumer China have driven the price of copper, because it is used largely in construction and power cables and is seen as an economic bellwether. Copper has fallen around 23 percent from a record high of $10,190 hit in February but has risen around 18 percent since late October. It rose nearly 10 percent last week. "We had a good relief rally starting at the end of October, so the S&P news was an excuse to take profit," said Gianclaudio Torlizzi, a partner at metals consultancy T-Commodity. "But until we see a structural solution for the euro zone debt problem, we will not change our bearish view on metals. But we are flexible. The situation is very fluid, and can change from one day to the next," he added. For some metals in the complex, there is still interest in buying on the dips as shorts look to cover, RBC said in a note, but the situation in Europe looks set to be a cap on the market for some time to come. The S&P warning sent most markets reeling, knocking a rally inspired by a Franco-German initiative to enforce budget discipline across the 17-member zone through EU treaty changes. A summit of EU leaders will try to put together a convincing agreement on Friday. The warning hurt the euro, but the currency moved higher after a surprise jump in German industrial orders. With most investors already running bearish positions on the euro, chances of a bounce were strong as many were looking to book profits. The dollar gave up most of its earlier gains but remained in positive territory against a basket of currencies. A stronger dollar makes commodities more expensive for holders of other currencies. PATCHY Outside the euro zone, growth has been patchy. The U.S. service sector eased last month, and new orders for factory goods fell in October, tempering recent optimism that the U.S. economy may be poised for a more vigorous rebound. The ADB said in its Asian Economic Monitor on Tuesday that Emerging East Asia's economic momentum remained robust, but the region faced greater risks than just three months ago as Europe's debt problems and the fragile U.S. economy could worsen into another global crisis. "We are still in an economic slowdown and latest economic data from the U.S. such as factory orders were weaker than expected," Credit Suisse said in a note. "We also think that the $8,000 mark for copper will be difficult to break." Inventories of copper in LME-monitored warehouses rose for a fourth session in a row, partly indicating a pull-back in demand for the metal. Three-month tin was $19,950 per tonne in rings, up from $19,900 at the close on Monday. But the metal is still down around 40 percent since a record high $33,600 hit in April. Smelters in Indonesia's main tin-producing region of Bangka island stopped shipments from Oct. 1 in a self-imposed bid to push benchmark tin prices above $23,000 a tonne. But some smelters started to flout the ban last week. Tin stocks rose 230 tonnes to 12,395, and tightness in the market has been eroding since last week. Cancelled warrants, or metal earmarked for delivery, have almost halved to 11 percent from 20 percent last week. Three-month aluminium was $2,104 in rings from $2,130 at the close on Monday, lead was $2,083 from $2,120, and nickel was $18,135 from $18,505. Zinc, untraded in rings, was bid at $2,010 from $2,040. Metal Prices at 1311 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2010 Ytd Pct move COMEX Cu 354.65 -6.20 -1.72 444.70 -20.25 LME Alum 2105.25 -24.75 -1.16 2470.00 -14.77 LME Cu 7816.00 -124.00 -1.56 9600.00 -18.58 LME Lead 2088.00 -32.00 -1.51 2550.00 -18.12 LME Nickel 18176.00 -329.00 -1.78 24750.00 -26.56 LME Tin 20001.00 101.00 +0.51 26900.00 -25.65 LME Zinc 2013.50 -26.50 -1.30 2454.00 -17.95 SHFE Alu 16170.00 -50.00 -0.31 16840.00 -3.98 SHFE Cu* 57670.00 -290.00 -0.50 71850.00 -19.74 SHFE Zin 15670.00 -45.00 -0.29 19475.00 -19.54 ** Benchmark 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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