The metal used in power and construction ended $7,265 from $7,375 on Wednesday. The dollar rose to near 6-month highs against the euro, which was hit by Greece's swelling budget deficit. "There is a negative correlation between commodities and the US dollar," said Eugen Weinberg, an analyst at Commerzbank. The US currency trimmed gains, allowing base metals recover some poise, after US President Barack Obama's comments on making the financial system safer by preventing big banks from taking excessive risks.
-- Aluminium stocks hit record high
-- Copper stocks rise to highest since February 2009
Data showed that China's annual gross domestic product surged 10.7 percent in the fourth quarter, with analysts saying it was only a matter of time before Beijing took more monetary policy steps. "We've entered a sort of glass half empty period in the last week or so. The Chinese numbers were great but people are focusing on the tightening in China," said David Thurtell, analyst at Citigroup.
Concerns that Beijing will step in to tighten credit have triggered flight-to-quality buying into the dollar this week, weighing on metals. Weak demand for copper outside China was highlighted by stocks of copper in LME warehouses which jumped 8,000 tonnes to total 534,650 tonnes, the highest since February last year.
"I think we'll stick (near term) in ranges traded since mid-November," said Citigroup's Thurtell, citing rising copper stocks, tighter monetary policy in China and a sluggish recovery in western countries. Aluminium, used in transport and packaging, fell to $2,218 a tonne, the lowest since December 17. It closed at $2,238 a tonne from $2,267 on Wednesday.
Aluminium stocks hit a record high, rising 18,525 tonnes to 4.64 million tonnes, but analysts said most of the stock remains tied up in financing deals, which could leave the market short of material, should demand improve. Zinc slipped to $2,385.25 a tonne, the lowest since December 18, and closed at $2,400 from $2,444, tin at $17,750 from $17,775, and stainless steel ingredient nickel at $18,900 from $18,805. Battery material lead slid to $2,220.75 a tonne, the lowest since November 27. It closed at $2,255 from $2,295.