HANOI, May 14 (Reuters) - Copper prices fell on Friday, with
the London contract set for its first weekly decline in more
than a month, on worries of tightening credit that could
potential cap demand for the metal.
Three-month copper on the London Metal Exchange fell
0.7% to $10,271 a tonne by 0706 GMT, down 1.4% on a weekly
basis, its first decline since the week ended April 2.
The most-traded June copper contract on the Shanghai Futures
Exchange closed down 1.9% at 74,560 yuan ($11,589.70) a
"Supply will improve, while we note credit impulse data in
the United States and China is easing, which will help demand
taper off later this year and next," said Fitch Solutions in a
"Metal prices will ease later in the year as the ongoing
supply-demand mismatch eases."
A metal trader added that there is some liquidation prior to
the weekend and base metals prices also fell in accordance with
a sharp sell-off in the ferrous market.
China's new bank loans fell more than expected in April
while money supply growth slowed to a 21-month low, as the
central bank gradually scales back pandemic-driven stimulus to
reduce debt and financial risks in hot areas of the economy.
Earlier this week, China's state council said the country,
the world's biggest metals consumer, will monitor changes in
overseas and domestic markets and effectively cope with a fast
increase in commodity prices, without specifying how.
Both copper contracts hit their record high on Monday.
* LME aluminium fell 0.5% to $2,440.50 a tonne while
ShFE aluminium fell 2% to 19,315 yuan a tonne, nickel
dropped 1.3% to 128,770 yuan a tonne and lead
shed 2.2% to 15,055 yuan a tonne.
* Russian metals producer Nornickel has resumed
full operations at its nickel-copper Oktyabrsky mine hit by
flooding this year.
* For the top stories in metals and other news, click
($1 = 6.4333 yuan)
(Reporting by Mai Nguyen; Editing by Rashmi Aich)