By Anna Stablum and Lars Paulsson June 9 (Bloomberg) -- Copper may fall as much as 28 percent in the third quarter, creating a “great opportunity” to buy as prices are expected to move higher in the fourth quarter, Skandinaviska Enskilda Banken AB said. Copper on the London Metal Exchange has eased 16 percent this year as China, the world’s largest user, enacted measures to cool its property market and Europe struggled with a sovereign-debt crisis. Copper for delivery in three months traded at $6,229.50 a metric ton at 8:12 a.m. on the LME. The contract last week dropped more than 20 percent since this year’s high, entering a bear market. “If it moves down to $4,500, I think it’s a great opportunity,” said Bjarne Schieldrop, chief analyst for commodities, in an interview in London yesterday. “It would definitely be an extremely good price to move in.” Prices had also moved lower on concern about stricter regulations for derivatives trading in the U.S., he said. “Additionally we are moving into the seasonally weaker period and that is putting pressure on industrial metals,” he said. In the Northern Hemisphere, copper production tends to slow down in the third quarter as plants are shut for maintenance work and workers go on holidays. In the fourth quarter, prices will probably rise as demand for copper from China will support prices, Schieldrop said. “In general we are quite bullish for copper prices,” he said. The Oslo-based analyst said gold was the bank’s favorite commodity as uncertainty in financial markets about Europe’s debt crisis would remain supportive for prices. “Easily it should move above $1,500 this year,” Schieldrop said. The bank’s customers “want to buy options with $3,000 strikes” over the next three years, he added. Gold for immediate delivery in London reached a record $1,252.11 an ounce yesterday. To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Lars Paulsson in London at lpaulsson@bloomberg.net.

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