LONDON, May 11 (Reuters) – Aluminium fell to its lowest in a week on Friday and was poised to end the week in negative territory as the market corrected after a recent price surge on U.S. sanctions against a major shareholder in the world’s largest producer. Benchmark aluminium on the London Metal Exchange (LME) was bid down 2.6 percent to $2,274 a tonne, its lowest since May 3, after failing to trade in official rings. The price in the light metal rallied to a nine-year high last month. Washington last month announced sanctions on Russian billionaire Oleg Deripaska and several companies in which he is a large shareholder, including Rusal. “It’s a continued correction from the multi-month high we have seen in April,” said Commerzbank analyst Daniel Briesemann, adding that the aluminium price reaction to U.S. sanctions had been exaggerated. “The news will dictate the price. However, over the next few weeks or month I would definitely say the correction would continue.” RUSAL: Russian aluminium giant Rusal on Friday warned of expected harm to its business from U.S. sanctions, sending its share price lower despite the company reporting a 20 percent jump in first-quarter core profit. STOCKS: On-warrant stocks in aluminium — those not earmarked for delivery — fell by 3,250 tonnes to 860,700 tonnes. They have shed 18 percent since April 16 to the lowest levels since early February, while headline stocks are down 11 percent. CHINA LENDING: Chinese banks extended 1.18 trillion yuan ($186.4 billion) in net new yuan loans in April, up slightly from March and higher than expected, as policymakers look to support the economy in the face of fresh risks from U.S. trade threats. Signs of more lending in China, the world’s top consumer of metals, should generally support prices. EGA: Emirates Global Aluminium’s stock market listing is likely to slip to 2019 because of turmoil in global aluminium markets after the U.S. sanctions on Rusal, three sources familiar with the deal said. JAPAN SUPPLY: Japanese copper miners JX Nippon Mining & Metals and Sumitomo Metal Mining plan to increase output from their mines in Chile this year but face challenges in bringing them to full capacity and meeting profit targets. PRICES: Copper traded 0.1 percent lower at $6,907 a tonne but was on track to end the week with a gain of more than 1 percent. Lead was bid down 1.5 percent to $2,340, tin was flat at $20,825, zinc added 0.2 percent to $3,093.50 and nickel rose 0.7 percent to $13,975.