* Some China banks tripled write-offs on bad loans * U.S. Fed still expected to delay tapering stimulus * Loose Fed policy whets appetite for aluminum financing By Maytaal Angel LONDON, Oct 23 (Reuters) - Copper fell nearly 1 percent on Wednesday as concerns of tighter monetary policy in top metals user China outweighed speculation that Tuesday's tepid U.S. jobs data will deter the Federal Reserve from tapering its stimulus this year. Fears of tighter monetary policy in China were amplified earlier by reports that some of the country's big banks were tripling write-offs on bad loans. Short-term Chinese money rates surged on the policy fears. China consumes about 40 percent of the world's copper. Copper hit a one month high on Tuesday after the first U.S. jobs report since the partial government shut down suggested the economy had lost steam, supporting expectations the Federal Reserve will delay tapering its stimulus programme. Nine of 15 U.S. primary dealers surveyed by Reuters on Tuesday now expect the Fed to begin slowing its $85 billion-a-month bond-buying programme in March. "The fed tapering (delay), the global economy strengthening slowly - these factors help solidify the (copper price) floor but what is the bullish trigger to break out of the range? I don't see it," said Societe Generale analyst Robin Bhar. "There's more supply coming through. Is China going to be aggressively pushing its economy forward, the answer is no (so)more rangebound trading will continue through to the year end at least." Benchmark three-month copper on the London Metal Exchange slipped 0.93 percent to $7,265 a tonne by 0942 GMT, eroding 1.2 percent gains from the previous session. Copper prices hit the highest since Sept. 20 on Tuesday at $7,350 a tonne but have been in a broader $7,000-$7,420 band since early August. While the prospect of extended U.S. monetary stimulus is supportive for metals, sluggish U.S. growth is doing little to improve copper's demand outlook, amid rising copper supply. The market is seen in a surplus both this year and next. Bond buying helps to prop up commodities by allowing greater liquidity for both business and investors, while weakening the dollar, which makes dollar-priced commodities less expensive for holders of other currencies. The U.S. currency tentatively steadied near a two year low versus the euro on Wednesday after its latest slide. Back in China, concern was raised on Tuesday that ample credit could fuel inflation as a report showed house prices jumped the most in nearly three years. On the plus-side for copper, worries of a credit crunch if the government tries to clamp down on soaring house prices have fuelled financing demand for the metal. Chinese investors who buy copper as collateral for short-term loans have started using LME stocks for the practice. In other metals traded, packaging metal aluminum fell 0.31 percent to $1,873.25 a tonne, after hitting its highest since late August on Tuesday. Elsewhere, Norsk Hydro said its July-September core earnings rose more than expected. Hydro also adjusted its 2013 forecast for global primary aluminum demand growth, excluding China, to 2 percent from previously 2-4 percent.

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