MELBOURNE, April 12 (Reuters) - London zinc fell to a
four-month low on Thursday, tracking the prices of other steel
materials as construction demand in China got off to a slow
start in the usually strong second quarter. 
    Markets came under pressure on Thursday as the threat of
imminent U.S. military action in Syria rattled investors and
sent oil prices higher on concerns about potential disruptions
to supply and distribution.
   "The metals seem to have slipped back into following the
global equity markets and thus prices are lower today as Asian
stocks lose ground," said Kingdom Futures in a report.
   "The markets will certainly be more nervous than usual as
people watch out for the U.S. response to Syria."
    
    FUNDAMENTALS
    * London Metal Exchange zinc slid 2.7 percent to
$3,150 a tonne by 0637 GMT, having earlier touched a low of
$3,122.50, its weakest since Dec. 12. Prices crashed through
support at the 200-day moving average of $3,172 a tonne,
triggering a rush in sales from funds, a trader said. 
    * SRB SALES?: Industry sources said that the drop in prices
was fuelled by talk that China's State Reserve Bureau had been
selling zinc stocks, although several traders dismissed the talk
as having been around in the market for several weeks. 
    "It's supposed to be 50,000 tonnes - that's not really
enough to impact the market," one trader said. The SRB did not
immediately reply to a faxed request for comment. 
    * LME copper fell 1.2 percent to $6,863 a tonne,
reflecting a sour tone across metals amid broad risk-off
sentiment in the markets. Shanghai Futures Exchange copper
 fell 1.4 percent to 50,400 yuan ($8,030) a tonne. 
    * STEEL DEMAND: Iron ore futures in China have been falling,
with investors worried about slipping steel margins this year
and leaner demand in the world's top consumer. A seasonal pickup
in China's construction activity that usually comes in April and
May has been off to a slow start, traders said. 
    * ZINC: Longer term, zinc prices are expected to remain
buoyant after hitting their highest in a decade because of years
of underinvestment, the founder and chairman of Vedanta
Resources said on Wednesday. 
    * CHINA POLLUTION: The Chinese city of Xuzhou is carrying
out environmental inspections targeting air pollution emissions
at industrial plants, construction sites and in the transport
sector that are expected to last for as long as six months. 
    * CME Group has also revoked approved status for
registration of Russian firm Rusal's metal for
delivery against its aluminium futures contracts, according to a
notice on its website. 
    * RUSAL: Trader Glencore, a Rusal shareholder and
customer, will declare force majeure on some aluminium supply, a
source familiar with the matter said.