July 27 (Bloomberg) -- Copper may fall in New York, ending a six-session winning streak, as further weakness in demand to draw metal from stockpiles feeds speculation that the rally carried prices too high. Bookings to remove copper from inventories monitored by the London Metal Exchange slid for a third day to the lowest level in almost two weeks. Prices gained 1.2 percent yesterday, extending the six-day rally to 10 percent. “Physical interest has subsided somewhat,” said James Roberts, an account executive at Sucden Financial Ltd. in London. “Consumers are not ready to pay these high prices.” Copper for September delivery was little changed at $3.221 a pound at 8:09 a.m. on the Comex in New York. The metal for delivery in three months dropped 0.6 percent to $7,108 a metric ton on the LME. Prices may be supported by gains for the euro against the dollar and rising equity markets, Alex Heath, head of industrial-metals trading at Royal Bank of Canada Europe in London, said in a report. A weaker dollar makes metals priced in the currency cheaper in terms of other monies. The euro rose to a two-month high against the dollar today. Futures indicated that U.S. stock indexes will advance when trading opens in New York. The Dow Jones Industrial Average must top 10,600 points to boost the euro and metals, Heath said. It closed yesterday at 10,525.43 points. Smaller Inventories Bookings to remove copper from LME warehouses fell 8.4 percent to 30,725 tons, daily exchange figures showed. They have dropped 11 percent this month after jumping 52 percent in June. Bookings are still up almost 12-fold this year. LME-tracked copper stockpiles shrank for a second day to 413,800 tons, the lowest level since Nov. 17. Inventories are down 18 percent this year and headed for the first annual drop since 2004. The U.S. is the world’s second-biggest copper user after China. Construction makes up a quarter of demand for the metal, according to the Copper Development Association. Purchases of new U.S. homes rose 24 percent in June to an annual pace of 330,000, the Commerce Department said yesterday. Aluminum Usage Aluminum for three-month delivery on the LME rose 0.2 percent to $2,059 a ton. European consumption of flat rolled products such as strips and sheets improved by 5 percent in the second quarter from the first, said Norsk Hydro ASA, Europe’s third-largest maker of the lightweight metal. Demand in Europe for extruded aluminum products weakened from the first quarter, Oslo-based Hydro said. Consumption improved from the first quarter in North America, and in South America usage of extruded products “continued to be positive, mainly in Brazil,” it said. Tin gained 0.7 percent to $19,530 a ton after reaching $19,800, the highest intraday price since Sept. 3, 2008. Lead dropped 1 percent to $1,995 a ton, nickel declined 0.2 percent to $20,769 a ton and zinc slid 0.7 percent to $1,941 a ton. --With assistance from Andrew MacAskill in London. Editors: Dan Weeks, Claudia Carpenter. To contact the reporter on the story: Anna Stablum in London at astablum@bloomberg.net. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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