RTRS:METALS-London copper falls as U.S. housing prices sag
* London copper falls after market re-opens
* Weak U.S. house prices, Japan's factory output crimp
demand
* Copper will fall to $7,371: technical analysis
(Updates prices)
By Jane Lee
KUALA LUMPUR, Dec 28 (Reuters) - London copper dropped
on Wednesday, snapping four days of gains, on concerns that
demand for the metal may wane after a report showed weak house
prices in the United States, the world's largest economy.
A more-than-expected slump in Japan's November factory
output after Europe's debt crisis and flooding in Thailand hit
major manufacturers also hurt copper prices.
Three-month copper on the London Metal Exchange lost
1.5 percent to $7,533.25 a tonne by 0602 GMT. The exchange was
closed on Monday and Tuesday. Prices have tumbled 22 percent so
far this year, after two annual increases.
The most-traded March copper contract on the Shanghai
Futures Exchange inched up 0.22 percent to 55,170 yuan
($8,700) a tonne.
Japan's industrial output fell 2.6 percent in November, a
much bigger drop than a median market forecast of a 0.8 percent
decline, and following a 2.2 percent increase in October,
government data showed on Wednesday.
Separately, a report from Standard & Poor's/Case-Shiller
showed U.S. house prices in 20 major metropolitan areas declined
1.2 percent on an unadjusted basis in October after falling 0.7
percent the prior month.
LME copper will fall to $7,371 per tonne, as a
rebound from the Dec. 15 low of $7,131 has completed, according
to Reuters technical analyst, Wang Tao.
Any decline in prices may be limited as workers at Freeport
McMoran Copper & Gold Inc's mine in Indonesia halted on
Tuesday their return to work after a three-month strike, pending
the resolution of a labour dispute.
Base metals prices at 0602 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7533.25 -116.75 -1.53 -21.53
SHFE CU FUT MAR2 55170 120 +0.22 -23.22
LME Alum 2012.25 -3.75 -0.19 -18.53
SHFE AL FUT MAR2 15910 40 +0.25 -5.52
HG COPPER MAR2 341.75 0.85 +0.25 -23.02
LME Zinc 1849.00 -6.00 -0.32 -24.65
SHFE ZN FUT APR2 14740 00 +0.00 -24.31
LME Nickel 18495.00 -10.00 -0.05 -25.27
LME Lead 2005.00 -15.00 -0.74 -21.37
SHFE PB FUT 15150.00 -30.00 -0.20 -17.44
LME Tin 19300.00 5.00 +0.03 -28.25
LME/Shanghai arb 590
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
($1 = 6.3226 Chinese yuan)
