Copper declined in London on speculation slowing construction and auto manufacturing worldwide will reduce demand and increase stockpiles. Copper, used in plumbing and electrical wiring, dropped 3.1 percent last week and is down 64 percent from its July record as the global recession pushes stockpiles to a five-year high. Cable and wire exports from Japan, the world’s second-largest economy, fell for a third month in December, producers said last week. In Japan “a major collapse in demand and production is underway, driven by a collapse in exports, domestic activity and massive destocking,” Macquarie Group Ltd. analysts led by Jim Lennon said in a report today. “Japanese copper demand is a disaster” and rising sulfuric acid stockpiles may force smelter operators to cut output further, the bank said. Copper for delivery in three months fell as much as $6, or 0.2 percent, to $3,251 a metric ton and traded at $3,250 at 10:45 a.m. Singapore time. The contract jumped 5.2 percent on Jan. 23, its first gain in four days, after an earthquake rattled Chile, the world’s biggest supplier of the metal, and investors that had contracted to sell the metal at lower prices. “Short covering helped prices rally across the complex on Friday, despite some further significant increases in stocks of aluminium, copper and zinc,” Macquarie said. Copper for March delivery fell 1.55 cents, or 1 percent, to $1.4565 a pound on the Comex division of the New York Mercantile Exchange. The contract jumped 5.4 percent on Jan. 23, reducing its loss for the week to 3.6 percent. Shanghai markets are closed for China’s Lunar New Year holiday. Among other LME traded metals, aluminum rose $3, or 0.2 percent, to $1,345 a ton, while zinc jumped $9, or 0.8 percent, to $1,170 a ton. Lead, nickel and tin were untraded.

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