Copper fell for a second day in London on concern that China, the world’s largest user, may take more measures to cool its economy and on a stronger dollar. China’s benchmark money-market rate rose to the highest level in seven days after the central bank ordered lenders to set aside more funds as reserves. Prices also slid as Irish and European officials held talks on “market conditions” and Germany pushed the country to accept a bailout. Copper fell the most in two weeks on Nov. 12 on the London Metal Exchange. “Three factors -- China, a stronger dollar and euro-zone debt concerns -- seem to have caught sentiment, certainly for the time being,” said Robin Bhar, an analyst at Credit Agricole SA’s investment-banking unit in London. “It’s a follow-on from Friday.” Copper for delivery in three months dropped $71, or 0.8 percent, to $8,544 a metric ton at 12:11 p.m. on the LME. Copper for delivery in March fell 0.2 percent to $3.8895 a pound on the Comex in New York. All of the six main metals traded on the LME declined, led by zinc. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, rose as much as 0.6 percent. A stronger dollar saps demand for commodities as an alternative investment and makes metals priced in the currency more expensive in terms of other monies. Borrowing Costs China’s four biggest banks will issue no new loans to property developers for the rest of the year, the state-run China Real Estate Business reported, citing unidentified executives at the lenders. The People’s Bank of China may raise interest rates twice late this year and early next year, the Economic Daily reported on its website today, citing Chen Xikang, a researcher with the Chinese Academy of Sciences. Industrial metals may decline by another 10 percent to 15 percent in coming weeks, according to Bhar. “We’ve rallied strongly, particularly in copper, and for copper we could come back to look at the $8,000 level, which is a key psychological level,” he said. “We’ve rallied from $7,000 to a new high in copper very, very quickly, so to give something back wouldn’t be unexpected.” In Chile, Anglo American Plc and Xstrata Plc continued to produce copper at a normal rate at the Collahuasi mine, the world’s fourth-largest, as a strike by workers entered a 12th day. LME copper rose to a record $8,966 a ton last week, partly on concern shipments at the mine, which accounts for more than 3 percent of world production, may be disrupted. Zinc, Lead Zinc for three-month delivery on the LME slid 4 percent to $2,298 a ton and lead declined 3.5 percent to $2,432 a ton. Growth in Chinese lead consumption probably will slow to 11 percent in 2010 from 16.5 percent last year as demand from auto production and telecommunications weakens, according to Beijing Antaike Information Development Co. “Fundamentals for both of these metals are currently not that strong,” Bhar said. “Therefore, when there is some bad news coming through, they are always liable to fall further. The higher the rise, the deeper the fall.” Tin for three-month delivery on the LME fell 2.3 percent to $25,550 a ton. Prices reached a record $27,500 on Nov. 9. The metal has jumped 50 percent this year, leading LME advances, after production was disrupted in Indonesia and the Democratic Republic of the Congo. Refined tin shipments from Indonesia, the world’s largest exporter, expanded last month for the first time since July because of higher prices, the country’s trade ministry said. Aluminum declined 1.1 percent to $2,376.50 a ton and nickel dropped 1.8 percent to $22,280 a ton. To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

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