Copper prices rose on Thursday as strong economic growth in China boosted sentiment, and nickel hit a fresh record high for the seventh session in a row. Copper for delivery in three months ended at $5,850 a tonne on the London Metal Exchange from Wednesday's close at $5,715 a tonne.
It hit a two-week high of $5,910 on Thursday. Nickel jumped to a fresh record high of $38,798, up by 15 percent since the start of the year. It closed at $38,145, up 2.5 percent, against $37,200 in the previous session.
China's economy, the world's fourth-largest, grew 10.7 percent last year the fastest since 1995, as investments and exports powered ahead despite government efforts to curb expansion.
China has seen double-digit growth for four years running. "(The data) has made people feel friendly towards metals," an LME trader said, adding that some funds were reversing short positions - a bet on lower prices - on copper and aluminium. China's December trade and production data indicated that its demand for commodities was likely to stay strong.
"The most notable aspect of the data was the continued big increase in imports of copper units in all forms," Barclays Capital, an investment bank, said in a report.
Refined copper net imports, at over 90,000 tonnes, reached their highest level for the year and apparent consumption in December rose by 18 percent year-on-year, the report said.
Analyst Michael Widmer at Calyon said in a note the data could support prices in the short-term, but "for the whole year we do not expect that it will make a significant difference to the global market balance".
Many analysts point to a surplus of around 100,000 tonnes. Stocks of copper in LME warehouses rose by 5,425 tonnes to 203,375 up from around 100,000 early last year.
"It seems that the failure to break down (copper prices) is promoting some fresh money to look at copper once again, especially now that the other metals seem to be leading the way," analyst Edward Meir at Man Financial said in a report. Available stocks of nickel at LME warehouses have fallen to around 2,700 tonnes - less than one day global consumption.
Aluminium gained to $2,792 from $2,804 on Wednesday, when it hit a four-week high of $2,846 on worries about supplies of bauxite - used to make aluminium - from Guinea, where a general strike has disrupted shipments.
Zinc closed higher at $3,710 from $3,690. Barclays Capital said the Chinese data showed a slowing of zinc demand, reflected in continued high Chinese export levels. But the bank believes these are temporary, related to changes in export taxes and duties in December.
Lead ended at $1,703 versus $1,685. It touched an intraday high of $1,725, nearing its contract high of $1,785 recorded on December 12. Tin was last quoted at $12,275/12,300 from $12,225/12,250 on Wednesday when it touched a new record high of $12,500 on supply concerns in Indonesia.
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