Aug 10 (Reuters) - Shanghai copper prices on Monday fell to their lowest in more than a month, while London copper also declined on considerable uncertainty on whether U.S. policymakers can approve a new package of fiscal support for the virus-hit economy.

The most-traded September copper contract on the Shanghai Futures Exchange dropped to 49,580 yuan ($7,115.28) a tonne, its lowest since July 8.

Three-month copper on the London Metal Exchange fell 0.6% to $6,270.50 a tonne by 0307 GMT, having lost 1.6% last week, the biggest weekly drop since mid-May.

Discussions over another U.S. stimulus bill to address the impact of the coronavirus pandemic fell apart on Friday. However, hopes grew on Sunday that a stand-off would end between U.S. Democrats and the White House on a new support package.

FUNDAMENTALS

* China's July new bank loans are seen falling from June but still likely to be higher than a year earlier, amid sustained policy support to get the economy on a solid footing after the coronavirus.

* China's Henan Shenhuo Group had switched on the third 150,000-tonne production line of its aluminium smelting project in Yunnan province.

* Canada will slap retaliatory tariffs on C$3.6 billion ($2.69 billion) worth of U.S. aluminum products after the United States said it would impose punitive measures on Canadian aluminum imports.

* LME aluminium fell 0.9% to $1,755.50 a tonne, while zinc declined 2% to $2,356.50 a tonne. In Shanghai, nickel dropped 2.4% to 112,420 yuan a tonne and lead decreased 1.7% to 16,180 yuan a tonne.

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MARKETS NEWS

* Asian stocks held tight ranges as worries over flaring tensions between the United States and China weighed on sentiment, although signs of a recovery in industrial activity in the world's second-largest economy limited losses.

($1 = 1.3375 Canadian dollars)

($1 = 6.9681 yuan) (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)