* Japan upgrades nuclear crisis on par with Chernobyl
* High oil prices will cut growth - IMF says
(Updates prices)
By Silvia Antonioli and Rebekah Curtis
LONDON, April 12 (Reuters) - Copper fell on Tuesday as investors fretted about softness in demand from top metals consumer China, while the deepening nuclear crisis in Japan and recent strength in oil prices also knocked the demand outlook.
Three-month copper on the London Metal Exchange fell to close at $9,630 a tonne from $9,855 at the close on Monday.
Market sources think China's copper imports are unlikely to surge in April after a 29.2 percent rise in March since importers are worried about high stocks in Shanghai. [ID:nL3E7FB1K9
"Confidence has taken a hit now," said Alex Heath, head of base metals at RBC Capital Markets. "The off-systems volumes have been very low," he added of Tuesday's trade.
Long-term, copper looked supported by a broadly expected supply deficit. However, there are concerns in the market that this deficit may not be as strong as previously expected.
"You'll probably see some revisions from the banks and consultancies," Carl Firman, an analyst at Virtual Metals, said of the copper deficit forecasts.
Also triggering some selling, long-term commodity bull Goldman Sachs on Monday advised its clients to take profits as there was a strong chance that oil and other commodity prices may reverse.
Soaring oil prices and inflation in emerging economies pose new risks to global recovery but are not yet strong enough to derail it, the International Monetary Fund said on Monday.
Meanwhile, the economic damage from Japan's massive earthquake and tsunami last month is likely to be worse than first thought as power shortages curtail factory output and disrupt supply chains, a minister warned.
RISING ALUMINIUM COSTS
Higher inventories of copper in LME warehouses also pressured prices, fanning concerns about Chinese demand.
Stocks have been rising since mid-December and last rose 1,000 to 446,700 tonnes, the highest level since July 1.
Aluminium stocks fell 2,275 tonnes to 4,575,250 tonnes but stayed near a record 4,640,750 tonnes hit on Jan. 20 last year.
Nonetheless, soaring power costs, lucrative bank deals that keep metal away from the market and strong demand growth are likely to boost aluminium prices this year.
"Despite recent increases in aluminium prices stimulated by cost push support, we remain bullish as aluminium stays well below its 2008 premium over marginal cost levels," said Metal Bulletin Research analyst Kamil Wlazly.
"Having said that, we remain cautious about the impact of widespread inflationary pressures in emerging economies and high oil prices which could dampen global demand for industrial metals."
Aluminum giant Alcoa Inc reported a first-quarter profit that beat estimates on Monday.
China is considering plans to either scrap or reduce export tax rebates on some aluminium extrusion products, the China Securities Journal reported.
This comes after China decided to halt plans to build new aluminium plants to tackle serious overcapacity in the industry.
"China is trying to keep inflation stable and keep the metal inside the country. It will definitely have some impact," Wlazly said, adding that while domestic prices would likely stabilise or even soften, lower Chinese exports may support global prices.
Aluminium closed at $2,660 a tonne from $2,689. Tin closed at $32,550 a tonne from a last bid at $33,290 on Monday while zinc was at $2,469 a tonne from $2,545.
Lead was at $2,725 from $2,855 and nickel traded at $26,700 a tonne from $27,705. Metal Prices at 1613 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2010 Ytd Percent
move COMEX Cu 437.35 -8.65 -1.94 444.70 -1.65 LME Alum 2659.00 -30.00 -1.12 2470.00 7.65 LME Cu 9622.00 -233.00 -2.36 9600.00 0.23 LME Lead 2725.00 -130.00 -4.55 2550.00 6.86 LME Nickel 26700.00 -1005.00 -3.63 24750.00 7.88 LME Tin 32500.00 -550.00 -1.66 26900.00 20.82 LME Zinc 2469.00 -76.00 -2.99 2454.00 0.61 SHFE Alu 16780.00 -100.00 -0.59 16840.00 -0.36 SHFE Cu* 72310.00 -1060.00 -1.44 71850.00 0.64 SHFE Zin 18590.00 -215.00 -1.14 19475.00 -4.54 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Keiron Henderson and James Jukwey)