METALS-Copper Ends near 1-mth Low on Weak US Housing Data

NEW YORK/LONDON, Aug 24 (Reuters) –

Copper futures tumbled on Tuesday to
their lowest level in nearly a month after U.S. July new home sales data fell
more than expected, reinforcing worries about the demand outlook.

Benchmark copper CMCU3 on the London Metal Exchange ended at $7,137 from
a close of $7,255 on Monday. The metal used in power and construction touched a
session low of $7,105 a tonne, its lowest since July 28.

Copper for September delivery HGU0 fell 5.05 cents, or 1.53 percent, to
close at $3.241 per lb on the COMEX metals division of the New York Mercantile
Exchange.
 
Copper slumped after news that sales of previously owned U.S. homes in July
dropped more steeply than expected, exacerbating worries about the economy.

"Very poor homes sales numbers have seen base metals weaken significantly,"
said David Thurtell, analyst at Citi.

"But the same numbers appear to be seeing a reassessment of the dollar,
which is weakening and appears to be cushioning the fall in base metal prices -
for now."

The dollar lost ground against the euro EUR= and extended its fall
against the yen JPY=, making commodities cheaper for buyers in the euro zone
and Japan. [USD/]

On Wednesday, traders will be watching July new home sales data which a
Reuters forecast expects will paint a poor picture of the sector.

July new home sales are seen flat, although these will be near
historically low figures. Traders said another poor housing sector report would
weigh on copper demand.

"Copper prices are likely to dip below late July lows this week.
Wednesday's new home sales data will not be supportive," said Bob Haberkorn,
senior market strategist at Lind-Waldock.

In late July, COMEX September copper prices rose from lows around $3.15 per
lb.

Prices were also pressured by LME copper stocks, which rose for a second
day running. Warehouse inventories were up 1,625 tonnes to 403,825 tonnes.
Overall, stocks are still down about 150,000 tonnes since a mid-February peak,
in part because of strong buying from top consumer China.

Following the copper pric dip, aluminium prices hit theirlowest in more
than a month; zinc, lead and nickel all hit their lowest since late July; and
tin fell to its lowest in nearly two weeks.

PREMIUM

Aluminium CMAL3, used in transport and packaging, was untraded at the
close, but bid at $2,028 a tonne from $2,040 on Monday, having hit its lowest
since July 22 at $2,010.

Traders are watching a premium, or backwardation, of around $6 a tonne on
LME aluminium to be delivered on Wednesday and bought back on Thursday -- known
as the tom/next, and often used to lend metal to entities who are short.

The backwardation has emerged because of two significant positions holding
between 30 and 40 percent of aluminium stock warrants and cash contracts.

These holdings are said to be in lieu of financing deals, which have tied
up about 70 percent of LME aluminium stocks. These deals release cash for
producers and earn banks higher returns then they would in money markets.

Tin CMSN3 ended at $20,400, down from $20,460 on Monday. Earlier it
touched $20,160, its lowest since Aug. 12.

Zinc CMZN3 closed at $1,991, down from $2,044 on Monday, having touched a
session low of $1,985.

Battery material lead CMPB3 ended at $2,013 from $2,048. That compares
with a session low of $2,000.

Stainless steel making ingredient nickel CMNI3 ended at $20,599 from
$21,200. It fell as low as $20,510.

Metal Prices at 1928 GMT

Metal            Last      Change  Pct Move   End 2009   Ytd Pct
                                                         move
 COMEX Cu       323.60       -5.55     -1.69     334.65     -3.30
 LME Alum      2020.00      -20.00     -0.98    2230.00     -9.42
 LME Cu        7140.00     -115.00     -1.59    7375.00     -3.19
 LME Lead      2005.00      -43.00     -2.10    2432.00    -17.56
 LME Nickel   20475.00     -725.00     -3.42   18525.00     10.53
 LME Tin      20350.00     -110.00     -0.54   16950.00     20.06
 LME Zinc      1993.00      -51.00     -2.50    2560.00    -22.15
 SHFE Alu     15305.00      -25.00     -0.16   17160.00    -10.81
 SHFE Cu     56920.00     -270.00     -0.47   59900.00     -4.97
 SHFE Zin     16640.00     -280.00     -1.65   21195.00    -21.49