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Copper fell most in two weeks in London and New York on speculation an industry report will add to signs that U.S. economic growth is slowing. Nickel declined after Inco Ltd., the world's second-largest producer, reached an agreement with workers to end a two-month strike.

Sales of previously owned homes dropped in August to the lowest since early 2004, economists expect a report by the U.S. National Association of Realtors to show today. Copper has dropped 16 percent from a record $8,800 in mid-May, partly on evidence of shrinking U.S. demand.

``The market is becoming more concerned about slower economic growth in the U.S., which means slower demand for metals,'' said Michael Widmer, head of metals research at Calyon in London. Calyon is among 11 companies that trade on the floor of the London Metal Exchange.

Copper for delivery in three months fell $155, or 2.1 percent, to $7,390 a metric ton at 1:46 p.m. on the LME. A close at that price would mark the biggest percentage decline since Sept. 11. The metal has quadrupled in the past five years, partly fueled by demand for pipes and wires used in U.S. homes.

Copper for December delivery declined 7.6 cents, or 2.2 percent, to $3.3675 a pound on the Comex division of the New York Mercantile Exchange. Before today, prices had gained 69 percent this year. A futures contract is an obligation to buy or sell a commodity at a fixed price for a specific delivery date.

Sales of previously owned homes in the U.S., the second- biggest copper consumer, fell to an annual rate of 6.2 million last month from 6.33 million in July, according to the median estimate of 51 economists surveyed by Bloomberg News. The realtor group will release data at 10 a.m. Washington time. As much as 400 pounds of copper is used in the average U.S. house.

Copper Stockpiles

Dwindling demand for the metal may increase inventories, Widmer said. Stockpiles monitored by the LME increased 350 tons, or 0.3 percent, to 121,625 tons today. That's still less than three days of global consumption.

BHP Billiton Ltd., the world's largest miner, avoided a strike at its Spence copper mine in Chile. Workers voted to accept a three-year contract that includes a wage increase and a bonus, Andres Ramirez, union president, said yesterday. Workers had planned a strike tomorrow.

Spence is scheduled to start production in the fourth quarter.

Hedge-fund managers and other large speculators increased their net-short position, or bet prices will fall, by 18 percent to 11,042 contracts of Comex copper futures in the week ended Sept. 19, according to the Commodity Futures Trading Commission. Net- short positions rose by 1,648 contracts, or 18 percent, from a week earlier.

Nickel for delivery in three months fell $400, or 1.5 percent, to $27,250 a ton in London.

The 120-member United Steelworkers Local 6480 may ratify an agreement with Inco as early as this week and resume work at Voisey's Bay in Labrador, Canada,, company spokesman Bob Carter said Sept. 23.

Toronto-based Inco suspended production at Voisey's Bay after workers went on strike July 28 following five months of contract negotiations. The mine can produce 110 million pounds of nickel and 70 million pounds of copper a year.