By Claudia Carpenter Dec. 3 (Bloomberg) -- Lead dropped to a two-year low in London after Ivernia Inc., the former supplier of 3 percent of world output, was cleared to resume a shipment from Australia. Aluminum fell to a four-year low. Ivernia will start removing 8,000 metric tons of stockpiled lead concentrate next month after Western Australia Premier Colin Barnett announced the approval, Toronto-based Ivernia said today. Lead inventories in warehouses monitored by the London Metal Exchange have dropped 5.5 percent this year as Ivernia was stopped from shipping metal since last year. “If the material is converted to refined metal and put on warrant, yes it would turn the tide for lead and lead inventories would be increasing,” said Nick Moore, a commodity strategist at RBS Global Banking & Markets in London. Lead for delivery in three months fell $114, or 11 percent, to $975 a ton as of 4:42 p.m. in London, the biggest drop since Oct. 10. Prices earlier fell to $970, the lowest since June 2006. Ivernia’s exports were barred in March 2007 following an investigation into poisoning at Australia’s port of Esperance. Once the 8,000 tons is removed, Ivernia will work with the government on an area “clean up,” Ivernia’s director of investor relations Ann Candelario said. The next priority would be to move 21,000 tons of stockpiled lead from the port of Fremantle, she said. The metal, mostly used in car batteries, has dropped 62 percent this year because of reduced automobile production. U.S. industry sales dropped for a 13th straight month in November, the longest slide in 17 years. Deliveries in Germany will probably drop to 2.9 million vehicles in 2009 from slightly less than 3.1 million this year, Matthias Wissman, president of the Frankfurt- based German carmakers association said today. ‘Worst Month’ “December is probably going to be the worst month for a whole series” of economic reports for manufacturing, Moore said. “You have Christmas and New Year’s closures, and certain manufacturers have announced extending those.” A typical car battery contains 7.5 kilograms (16.5 pounds) of lead, the International Zinc and Lead Study Group says. Lead inventories in warehouses monitored by the London bourse increased 1,125 tons, or 2.7 percent, to 42,975 tons, the biggest jump since June 17. Aluminum dropped $85, or 5 percent, to $1,615 a ton, a four- year low, after stockpiles of the metal rose to the highest since November 1994. Inventories advanced 12,750 tons to 1.83 million tons, the LME said. Copper dropped $135, or 3.8 percent, to $3,420 a ton and earlier fell to $3,351, the lowest since July 2005. Freeport-McMoRan Copper & Gold Inc., the world’s second- largest copper producer, said it will produce 4.1 billion pounds (1.86 million tons) next year, rather than boost output to 4.3 billion pounds as forecast in October. The difference is about 90,719 tons. Global production will outpace demand by 244,000 tons next year after 109,000 tons this year, Bloomsbury Minerals Economics Ltd. said today. Zinc declined $27 to $1,142, nickel dropped $255 to $9,250 a ton and tin fell $205 to $11,750 a ton. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net or ccarpenter2@bloomberg.net

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