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Copper fell to an eight-month low in New York, extending a slide that began in May, as a slowdown in U.S. housing and rising inventories fueled concern that demand will lag behind supply.

Prices have fallen 36 percent from a record high on May 11 as new-home construction in the U.S. fell the most in 15 years and global stockpiles of the metal rose to the highest levels in more than a year. Builders are the biggest users of copper in the U.S., the world's second-largest consumer.

``It's going to be a long time before residential housing bounces back,'' said Michael Smith, owner of T&K Futures and Options Inc. in Port Saint Lucie, Florida. ``Housing is such a big consumer. It's going to be tough on old copper, unless something changes.''

Copper for delivery in March fell 7 cents, or 2.6 percent, to $2.579 a pound at 8:50 a.m. on the Comex division of the New York Mercantile Exchange. Prices earlier touched $2.5565, the lowest since April 5. The metal plunged 7.7 percent yesterday, the biggest drop since June.

Copper futures still gained 40 percent last year on supply disruptions. A futures contract is an obligation to buy or sell a commodity at a fixed price for delivery by a specific date.

On the London Metal Exchange, copper for delivery in three months fell for a third session, dropping $180, or 3.1 percent, to $5,675 a metric ton. The metal declined below $6,000 a ton yesterday for the first time since April.