Metals slump on demand concerns

SHANGHAI: Copper headed for its longest losing streak in seven weeks and aluminum dropped to the lowest level in more than a month on concern demand may wane in China and the United States.

Zinc slumped to a two-month low and lead declined to its lowest price in four months. China's banking regulator told lenders to step up scrutiny of property loans, while pledging to satisfy "reasonable" financing needs. In the US, sales of new homes unexpectedly dropped in December, capping the worst year on record.

"Prices rose last year in anticipation of improved demand this year," said Zhang Sida, an analyst at Shanghai Continent Futures Co. "With China moving to tighten credit and the US dollar remaining resilient, metals will be in a bit of a downtrend as investors mull a W-shaped recovery."