Base metals rose on the London Metal Exchange (LME) on Thursday, with copper recovering from falls on Wednesday for its highest close in the current bull run, traders said.
Other metals largely tracked copper and moved higher, but the complex was nervy after a rampant bull-market culminated with many hitting fresh multiyear highs on Wednesday.
Analysts said Wednesday's near $200 reversal in copper had been much needed after prices jumped to an 8-1/4 year high of $2,970.
"The downside was arrested by securing a bottom around $2,780/2,790, leading to the highest close so far for the current bull run. That leaves the market in a position to attempt a challenge to yesterday's spike high, negated on close below $2,790," said Triland Metals in an evening report.
Copper closed at $2,872 a tonne by the LME evening kerb, up nearly three percent from Wednesday's close of $2,790.
In its daily report, Man Financial said: "Copper seems to have some difficulty making up its mind on short term direction."
In contrast to the other firmer base metals, lead closed down nine dollars at $866. "The lead price still looks vulnerable to further liquidation in the short term," Triland said.
Zinc closed up at $1,118 from $1,110, but Triland remained cautious.
"A higher close took immediate pressure off the price, but a close above $1,130 is still required to shift the short term trend to bullish once more, while break below $1,110 will signal $1,095/1,100," it said.
On Thursday, LME warehouse inventories of metals fell across the board - the latest declines in a relentless trend. Copper stocks are down to eight year lows, while the lead stockpile is at a 15-year low.
Traders said the other factors that propelled metals to this week's highs remain. The dollar, although above all-time lows against the euro, remains soft, while China's insatiable appetite for metals to feed its booming manufacturing base will continue.
Aluminium ended up three dollars at $1,736, nickel also gained on the day rising $80 to $15,480 and tin was quoted at $6,650/6,660 from $6,590.
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