Copper declined for a second day in Asia, extending the biggest drop in two weeks, after weaker- than-projected U.S. economic data signaled slower industrial metals demand. Zinc and lead also fell. Three-month copper on the London Metal Exchange lost as much as 0.8 percent to $7,367 a metric ton, after falling 2.1 percent yesterday, the biggest intraday drop since July 16. The price touched $7,510 on Aug. 2, the highest level since April 29. “Prices have risen too much, too fast and do not reflect current fundamentals,” Zhu Haitao, an analyst at Zhongcai Futures Co., said from Shanghai. “Given the dismal data outside China and the ready availability of metal in China, it’s going to be difficult for prices to push past $7,500.” U.S. pending home sales unexpectedly dropped for a second month in June, figures from the National Association of Realtors showed yesterday. Consumer spending in June was unchanged from the previous month as employment growth stagnated, and factory orders fell more than twice as much as economists estimated, other reports showed. “Domestic demand is not good enough to absorb the recent gains,” said Li Ye, an analyst at Jiuheng Futures Co. “As copper prices increase, buying has slowed down.” The London contract traded at $7,388 a ton at 11:37 a.m. in Singapore, 0.5 percent weaker. Futures on the Comex in New York dropped 0.3 percent to $3.3475 a pound, while Shanghai copper futures fluctuated between gains and losses before ending the morning session little changed at 57,370 ($8,470) a ton. Construction accounts for a quarter of copper demand, according to the Copper Development Association, and builders are the biggest users of the metal in the U.S., the world’s second-largest consumer after China. Aluminum in London fell 0.4 percent to $2,196 a ton, zinc declined 0.5 percent to $2,075 a ton, and lead dropped 1 percent to $2,197 a ton. Nickel was 0.3 percent lower at $21,600 a ton, and tin decreased 0.6 percent to $19,725 a ton. To contact the reporters for this story: Glenys Sim in Singapore at gsim4@bloomberg.net; Helen Sun in Shanghai at hsun30@bloomberg.net

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