The most-traded copper contract for March delivery on the Shanghai Futures Exchange closed half a percent lower at 57,280 yuan ($9,200) a tonne on Tuesday. Copper stocks in China's bonded warehouses hit a record high of more than 1 million tonnes in November and are expected to rise by a further 100,000 tonnes by the end of the year due to weak domestic demand.

But Schnider said signs that China's economy was recovering, including falling inventories of appliances such as air-conditioners, could help copper rebound to $9,000 over the next six months.

Copyright Reuters, 2012