Copper Declines as Inventory Gains in London, Shanghai Signal Ample Supply

Copper futures fell for the second time in three days on signs that supplies are increasing.

Inventories in warehouses monitored by the London Metal Exchange are the highest since Sept. 24 after increasing for 16 straight sessions. Supplies monitored by the Shanghai Futures Exchange climbed 9.5 percent last week to the highest since June. Prices jumped 33 percent in 2010 as global inventories dropped 17 percent.

“Gains in stockpiles on the LME and Shanghai are adding a little pressure to the market,” said Phil Streible, a senior strategist at Lind-Waldock, a broker in Chicago.

Copper futures for March delivery fell 7.85 cents, or 1.8 percent, to close at $4.3295 a pound at 1:18 p.m. on the Comex in New York. On Jan. 3, the price reached a record $4.498.

On the LME, copper for delivery in three months dropped $75, or 0.8 percent, to $9,475 a metric ton （$4.30 a pound）. The price reached a record $9,754 on Jan. 4.

The copper contract for delivery in two days was $15.50 a ton more than the three-month contract, down from $50 on Dec. 31, signaling ample supply.

Some investors may want to put more money into equities than metals this year as growth becomes more assured and “because metals have already put in a massive performance in anticipation of this growth,” according to William Adams of Basemetals.com in London.

Zinc, lead and nickel also declined in London.

Aluminum rose 2.2. percent to $2,519 a ton, the highest since Sept. 25, 2008.

Tin was unchanged.