SG:Copper falls most in 4 months on US and China Housing
Bloomberg reported that copper futures in New York fell the most in 4 months as a drop in US homebuilder confidence and speculation that China will move to cool property purchases damped demand prospects for the metal used in pipes and wiring.
A National Association of Home Builders and Wells Fargo report showed that builder sentiment in February fell to 46 from January’s 47 that matched the highest reading since April 2006. The median forecast in a Bloomberg survey of economists projected a rise to 48. China Business News reported that the nation may introduce more policies to curb property prices.
Mr David Meger the director of metal trading at Vision Financial Markets in Chicago said that “Any sign that China may be limiting its real estate market is certainly concerning from a demand perspective. The builder confidence report is one more slight negative for the market.”
Copper futures for May delivery dropped 2.3% to settle at USD 3.6665 a pound on the Comex in New York, the biggest decline for a most active contract since October 19. Floor trading was closed yesterday for a public holiday. China is the world’s top consumer of industrial metals, followed by the US.
