Nov. 3 (Bloomberg) -- Copper fell to the lowest price in almost two weeks as climbing inventories signaled waning demand for the metal used in pipes and wires.

Stockpiles monitored by the London Metal Exchange have jumped to the highest level since May 12. The increases make prices vulnerable to “significant downside potential,” said Michael Jansen, an analyst at JPMorgan Securities Ltd. in London. Futures dropped 2.5 percent last week.

“The problem for copper is that there is a significant overhang of inventories,” said Lorne Kalisky, the president of Vican Trading Inc. in Montreal. “There is weak demand.”

Copper for delivery in three months fell $65, or 1 percent, to $6,490 a metric ton ($2.94 a pound) at 5:18 p.m. on the LME. Earlier, the price touched $6,372.25, the lowest level since Oct. 21.

Futures may drop to “the low $2.80s” a pound by the end of the week, Kalisky said.

“Mixed physical-demand fundamentals made it hard to buy into the hype around a strong global recovery-driven rebound in copper prices,” Jansen of JPMorgan said in a report.

Aluminum, nickel, lead, and zinc prices also declined in London. Tin was little changed.

Copper futures for December delivery fluctuated on the Comex division of the New York Mercantile Exchange were little changed at $2.9485 a pound. The price climbed as much as 1.5 percent and dropped as much as 1.7 percent.

To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.netMillie Munshi in New York at mmunshi@bloomberg.net.

Last Updated: November 3, 2009 12:24 EST