Copper fell in London before the release of figures that may show a weakening of the housing market in the U.S., the world’s second-biggest consumer of the metal after China. Sales of U.S. previously owned homes probably plunged in July to the lowest level since March 2009, according to the median of 73 forecasts in a Bloomberg News survey. Copper also dropped as Nobel Prize-winning economist Joseph Stiglitz said Europe’s economy is at risk of sliding back into a recession. “Concerns about growth going forward” weighed on metals prices today, said Robin Bhar, an analyst at Credit Agricole SA’s investment-banking unit in London. Copper for delivery in three months declined $55, or 0.8 percent, to $7,200 a metric ton at 10:05 a.m. on the London Metal Exchange. Futures for December delivery fell 1.1 percent to $3.2775 a pound on the Comex in New York. All of the six main metals traded on the LME retreated, led by nickel. Prices also declined as the dollar strengthened, LME copper inventories increased and orders to draw metal from stockpiles dropped. Commodities as measured by the S&P GSCI Spot Index fell 0.9 percent, down for a fifth day. Figures from the National Association of Realtors due at 3 p.m. London time may show that sales of existing homes in the U.S. slid 13.4 percent to a 4.65 million annual rate in July. A report due tomorrow may show that sales of new houses in the country were unchanged last month. Less Spending Construction accounts for a quarter of copper usage, according to the Copper Development Association. Europe is in danger of returning to recession as governments cut spending to reduce budget deficits, said Stiglitz. The region probably will account for about 20 percent of global copper usage this year, according to Barclays Capital. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, rose as much as 0.5 percent, gaining for a fourth day. A stronger dollar makes metals priced in the currency more expensive in terms of other monies. LME copper stockpiles expanded 0.4 percent to 403,825 tons. Canceled warrants, or orders to draw metal from LME warehouses, fell 1.3 percent to 30,250 tons. Including metal tracked by exchanges in Shanghai and New York, copper inventories totaled 601,505 tons, or 12 days of global consumption based on Royal Bank of Scotland Group Plc’s estimate for demand this year of 18.2 million tons. That’s down from almost 14 days at the start of 2010. Aluminum for three-month delivery on the LME dropped 0.6 percent to $2,028.75 a ton and zinc lost 1.7 percent to $2,010 a ton. Lead fell 1 percent to $2,028.50 a ton, tin declined 0.5 percent to $20,350 a ton and nickel slid 1.8 percent to $20,825 a ton. To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net.

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