Copper Declines in Asia on Concern U.S. Housing Slump Worsening

Copper fell in Asia on signs that a housing slump is worsening in the U.S., the world’s largest consumer of the metal after China.

Sales of previously owned U.S. homes in August slid by 4.3 percent to an annual rate of 5.5 million, a five-year low, the National Association of Realtors said yesterday. Lennar Corp., the biggest U.S. homebuilder, also reported the biggest quarterly loss in its 53-year history. Builders are the biggest users of copper in the U.S.

“While demand in China and Europe is healthy, the outlook for the U.S. is not too good judging from the numbers, and the U.S. is after all still a major copper consumer,” Yu Jiaming, an analyst at Jilin Jinchang Futures Co., said today.

Copper for December delivery on the Shanghai Futures Exchange fell as much as 690 yuan, or 1 percent, to 67,330 yuan ($8,960) a metric ton, and ended at 67,410 yuan a ton. The metal for immediate delivery in Changjiang, Shanghai’s biggest cash market, was little changed at 67,450 to 67,600 yuan a ton today.

“With the market closed next week, Chinese investors are cautious about taking on large positions,” said Zhu Bin, senior analyst at Nanhua Futures Trading Co. in Hangzhou. “Falling warehouse inventories should continue to offer support to the market at a time when Chinese demand is expected to pick up.”

China’s markets are close for the week-long National Day holiday starting Oct. 1.

London Metal Exchange copper for delivery in three months rose 0.3 percent to $8,020 a ton at 4:25 p.m. in Shanghai, after falling 0.6 percent yesterday.

Stockpiles of copper monitored by the London Metal Exchange fell for a fifth day, by 325 tons, to 130,950 tons today, while reserves in Shanghai fell 3,784 tons to 55,981 tons last week.

Other Metals

Zinc in Shanghai for December delivery ended the day off 0.3 percent at 26,435 yuan a ton, and LME zinc rose 1.4 percent to $2,965 a ton at 4:29 p.m. in Shanghai.

Shanghai December aluminum closed little changed at 19,350 yuan a ton, and LME aluminum rose 0.7 percent to $2,474 a ton.

Among other LME-traded metals, nickel gained 0.5 percent to $32,700 a ton, lead was up 1.3 percent to $3,450 a ton, and tin dropped 0.7 percent to $15,200 a ton.

Copper Declines in Asia on Concern U.S. Housing Slump Worsening