Copper declined for a second day to a four-month low as an unprecedented levy on bank deposits in Cyprus threatens to plunge Europe back into crisis, curbing demand for metals. Aluminum, nickel, tin, lead and zinc dropped. Copper for delivery in three months slumped as much as 2.7 percent to $7,545.75 a metric ton, the lowest level since Nov. 9, on the London Metal Exchange and traded at $7,617 by 10:39 a.m. in Tokyo. The metal rose 0.2 percent last week, gaining for a second week. Cypriot President Nicos Anastasiades bowed to demands by euro-area finance ministers to raise 5.8 billion euros ($7.5 billion) by taking a piece of every bank account in Cyprus. Anastasiades delayed a vote on the measure in parliament until today, a day later than planned, as he seeks more time to convince lawmakers to back him. “The Cyprus issue is a key driver for all markets today, strengthening the dollar and sending industrial metals lower,� said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. Last week’s unexpected drop in U.S. consumer confidence and increases in exchange stockpiles also depressed the copper market, he said. The Thomson Reuters/University of Michigan preliminary sentiment index for March fell to 71.8 from 77.6 in February. The gauge was projected to increase to 78, according to the median estimate of 67 economists surveyed by Bloomberg. On March 15, combined inventory monitored by exchanges in the U.S., London and Shanghai climbed to the highest level since 2003. Copper for July delivery on the Shanghai exchange declined 3.2 percent to 55,310 yuan ($8,893) a ton. The May contract on the Comex in New York retreated 2.2 percent to $3.444 per pound. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

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