BASE METALS: Copper Down On U.S. Housing, Weak China Imports

NEW YORK (Dow Jones) - Comex copper futures ended lower Monday on weaker than expected U.S. home sales and softer imports of refined copper to China.
The most traded contact for delivery in May settled up 1.2%, or 5.3 cents, to $ 4.2860 per pound on the Comex division of the New York Mercantile Exchange.
The low price of the contract for delivery in March fell 1.3%, or 5.4 cents, to $ 4.2755 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 had predicted that home sales fall 3.9% to 5.15 billion euros.
"The U.S. used-home sales figures were very disappointing for the market and triggered a sell out," said analysts at Sucden Financial in London.
Residential construction is a major end user of copper electrical cables and plumbing, but the prolonged weakness in existing home sales has created an excess inventory of real estate tends to delay construction of new ones.
Copper prices moved lower ahead of data as some traders cashed 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. Global copper consumption imported refined copper 28% 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 reduce 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 authorized the United Nations Thursday to use "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 was recently up 1.2%, or $ 1.25, to $ 102.32 a barrel.
Meanwhile, Japan is still struggling with an unstable nuclear facility, but the threat of large-scale crisis seems to have diminished. The Fukushima Daiichi nuclear complex was damaged by the 9. 0 magnitude of the earthquake and tsunami of 11 March. Since then the authorities have been struggling to keep the six reactors overheat and release dangerous amounts of radiation.
Progress has been slow and limited in Fukushima plant, the smoke of the two reactors to force workers to retire temporarily on Monday. While the causes of the smoke has not yet been established, "we can not rule out the possibility" that could be steam from a pool of water in the reactor spent nuclear fuel rods are stored, an official of the Nuclear Security Council and Industrial Safety Agency said at a news conference.