Copper drops on US home sales figures

Base metals saw price declines on Wednesday.

Copper dropped 2.2 percent to $7,780 per tonne in London even though London Metal Exchange inventories were 2,100 tonnes lower on the day, while September copper in New York fell 6 cents to $3.56 per pound for its biggest loss in a month.

The declines came as the National Association of Realtors said that sales of existing homes was 3.8 percent lower on June and was at its most sluggish rate in 4 years.

Following Commerce Department figures that showed new building permits at their lowest in ten years in June, the news affected the price of copper because a sluggish housing market means fewer homes built and so less copper used in pipes and wiring.

In other base metals, zinc and nickel each dropped 2.5 percent in London to trade at $3,640 per tonne and $31,400 per tonne respectively, while lead was 3.8 percent lower to $3,175 per tonne.