The most-traded April copper contract on the Shanghai Futures Exchange slipped 0.8 percent to 59,450 yuan ($9,400) a tonne on Wednesday. China's new home prices fell in December from November, for a third straight month of declines, and analysts expect prices to drop further as Beijing sticks to its tightening campaign against the once-hot real estate market.
"China's housing sector is facing challenges right now but this industry will still contribute to greater commodity consumption this year," said Judy Zhu, a commodities analyst at Standard Chartered in Shanghai, who forecasts LME copper averaging $9,000 in the third quarter.