Copper drops on housing data

Base metals prices were lower on Tuesday.

December copper was 2 cents lower to $3.63 per pound in New York on new data indicating that the housing slump in the US is getting worse.

House builder Lennar (NYSE: LEN) had its biggest loss in its history in its third quarter, while home values dropped by 3.9 percent in July after falling 3.4 percent in June and could drop more as houses spend more time on the market before finding a buyer.

In addition, existing home sales were down 4.3 percent in August.

Meanwhile in London, three-month copper was down $45 to $7,995 per tonne.

Among other base metals, zinc dropped 0.1 percent to $2,922 per tonne even though smelting capacity and stockpiles are predicted to be lower next year.

Lead was down 2.5 percent to $3,387 per tonne despite stockpiles which were at a 17-year low and indications that demand is up for use in the manufacture of batteries.