By Millie Munshi Nov. 28 (Bloomberg) -- Copper prices fell, capping the longest stretch of monthly declines since early 1999, as inventories climbed to the highest level in more than four years, signaling waning demand. Stockpiles monitored by the London Metal Exchange rose 1 percent to 291,650 tons today, the highest since Feb. 25, 2004. Copper’s 9.8 percent drop in November marked the fifth straight monthly drop, the most since March 1999. The commodity has tumbled 57 percent since June 30 as the global recession slashed demand for the metal used in pipes and wires. “Markets are under pressure on account of the bearish macro backdrop, which is directly manifesting itself through rising LME stock levels,” Edward Meir, an analyst at MF Global Ltd. in Darien, Connecticut, said in a report. Copper futures for March delivery fell 4.2 cents, or 2.5 percent, to $1.6495 a pound on the Comex division of the New York Mercantile Exchange, the biggest decline for a most-active contract since Nov. 19. In October, copper plunged 36 percent, the most since Comex futures debuted in 1988. Copper supplies will outpace demand next year by 250,000 metric tons, RBS Global Banking & Markets said today in a report. The surplus will widen to 500,000 tons in 2010, the bank estimated. “Demand concerns still predominate,” analysts including Nicholas Moore in London said. The metal will average $2.50 a pound next year, RBS forecast. That was down 26 percent from an estimated average of $3.40 this year, the bank said. On the LME, copper for delivery in three months dropped $76, or 2.1 percent, to $3,620 a metric ton ($1.64 a pound). The Comex was closed yesterday for the U.S. Thanksgiving holiday. To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net.

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