The US economy grew at a faster-than-expected 5.7 percent in the fourth quarter, the quickest pace in more than six years, the Commerce Department said earlier. But copper, which initially hit a session high of $6,950 a tonne, later retraced gains amid lingering concern about China's move on January 12 to raise domestic banks' reserve requirement ratio - a possible precursor to rate hikes.
China is the world's largest metals consumer. Copper prices have fallen around 9 percent this month, weighed by concern over market regulation in the US, monetary policy in China and continued gains in LME stocks. The latest data showed stocks rose 875 tonnes to total 541,050 - a near one-year high. Aluminium hit $2,069 - its lowest since December 1, and ended at $2,080 a tonne versus $2,108.
LME stocks of the metal, used in transport and packaging, fell 7,225 tonnes but remained near record levels above 4.6 million tonnes. A recent rise in cancelled warrants in base metals - material earmarked for delivery - has helped support prices at the lower levels. On Thursday, aluminium cancelled warrants were 246,800 tonnes compared with 215,975 tonnes on December 17.
"It tells you that markets are reasonably tight," said Deutsche Bank's Daniel Brebner. "There is potentially some re-stocking going on in the western world, decent demand in Asia." Steel making ingredient nickel ended up at $18,500 from $18,350 while battery material lead ended at $2,020 from $2,055, have earlier hit its lowest since late August last year at $2,010.
LME nickel stocks hit another record high, rising 1,290 tonnes to 164,808 tonnes, but traders said the price was being supported by worries over upcoming labour contract talks at Xstrata's Sudbury nickel-copper operations in Canada. Zinc ended at $2,110 a tonne from $2,158 and tin at $17,200 from $17,550, having earlier hit a near one-month low at $16,750. Zinc, used to galvanise steel, earlier touched $2,097, its lowest since October 19 last year.