Copper prices fell on Monday, after data showed sales of previously owned homes in the US tumbled last month, raising concerns about demand for the metal.

Copper for March delivery, the most actively traded contract, closed down 0.4 per cent at $2.8725 a pound on the Comex division of the New York Mercantile Exchange.

Existing-home sales declined 6.1 per cent in November from a month earlier to a seasonally adjusted annual rate of 4.93 million, the National Association of Realtors said Monday. That was the lowest level since May.

Copper is used extensively in manufacturing and construction, and existing-home sales can affect demand for appliances and remodelling. The US is the world's second-largest copper consumer, after China.

'This data was not good for copper,' said Ira Epstein, a strategist at the Linn Group. 'Ultimately, however, the copper market hinges on whether China decides to stimulate its economy.'

China accounts for some 40% of the world's copper consumption. Signs that China's economy is running out of steam have weighed on copper prices throughout 2014, as investors wagered that other key metal users wouldn't pick up the slack, leading to a global supply surplus of copper.