Copper Falls on Weak U.S. Home Sales

NEW YORK-The Comex copper futures ended lower on weaker than expected U.S. home sales and softer imports of refined copper to China.
The low price of the contract for delivery in March settled 1.3%, or 5.4 cents, to $ 4.2755 per pound on the Comex division of the New York Mercantile Exchange. The most traded contact for delivery in May was 1.2%, or 5.3 cents, to $ 4.2860 per pound.
U.S. February home sales fell 9.6% to 4.88 million, while prices plunged to its lowest level in nearly nine years. Economists surveyed by Dow Jones Newswires forecast home sales fall 3.9% to 5.15 billion euros.
Prolonged weakness in existing home sales has created an excess inventory of real estate, which tends to delay construction of new ones. Residential construction is a major end user of copper electrical cables and plumbing.
Copper prices began to move lower ahead of data as some traders moved to cash in recent gains.
"Some people are taking money off the table," said Bob Haberkorn, senior market strategist at Lind-Waldock.
Refined copper imports weak China also pressured prices Monday. The world's largest consumer of copper metal imported 28% less refined in February compared with the same period last year, the General Administration of Customs said on Monday.
"China has been much talk of slow its economy, our economy remains anemic and demand outlook remains very weak," said Larry Young, president of the Alliance Trading LLC. "Most traders expect the market to go down to $ 4.10 because most people still have a negative bias on copper."
Copper traders are also seeing the bigger picture geopolitics, with the focus on the allies launched air strikes in Libya at the weekend. The Security Council on Thursday the United Nations authorized the use of "all necessary means" to enforce an air exclusion zone over Libya and protect civilians from the forces of Colonel Muammar Gaddafi. The Middle Eastern country has been struggling with civil unrest for nearly two months of protests against the government unraveled in an armed conflict with security forces pro-Gaddafi.
Copper prices had come under pressure as the conflict disrupted oil exports from Libya, causing oil prices and slowing economic growth. Crude oil has recently been an increase of 1.2% to $ 103.06 a barrel.
Meanwhile, Japan continues to struggle with a nuclear installation unstable. The Fukushima Daiichi nuclear complex damaged by earthquake of 9.0 magnitude and tsunami earlier this month. Since then the authorities have been struggling to gain control of the facility, with limited progress.

(Source: http://online.wsj.com/article/SB10001424052748703858404576214482771344212.html)