Copper slipped on Monday, as tensions in Arab states deterred investors from riskier assets and on concern China's recent monetary tightening may dent demand from the world's top consumer of metals.
Three-month copper on the London Metal Exchange was at $9,807.25 a tonne at 1520 GMT versus $9,860 at the close on Friday.
Nickel hit a 34-month high and aluminium touched a 29-month peak, with nickel supported by Friday's news that Brazilian miner Vale was to cut some of its 2011 nickel production.
"You've got fears over Chinese demand looking forward," Carl Firman, an analyst at Virtual Metals said, citing market concerns about monetary tightening trends in China.
"（And） there's a bit of risk associated with the Middle East," he added.
On the upside, however, signs of economic recovery in the United States supported sentiment, he added.
Unrest in Libya stoked risk aversion in commodity and financial markets, part of a wave of protests that have swept through the Arab world this year and already deposed the presidents of Tunisia and Egypt.
Investors were also wary about whether or not a trend of monetary tightening in China could dent demand for industrial metals.
China raised bank reserve requirements by 50 basis points on Friday as it tackles high inflation.
Supporting sentiment, however, data showed German business morale rose to a record high in February, its ninth consecutive increase. The data indicated the strong recovery in Europe's powerhouse economy remains intact.
COPPER STOCKS
Keeping demand concerns alive, inventories of copper at LME warehouses continued climbing, last up 3,550 tonnes to 411,475 tonnes, the highest level since last August.
Copper stocks have climbed since mid-December but are still down from cycle highs hit last February at 555,075 tonnes.
Aluminium stocks rose 28,150 tonnes to 4,621,325 tonnes. The metal used in transport and packaging traded at $2,564.75 from $2,570 at the close on Friday, and earlier hit a high of $2,585.
Nickel hit a high of $29,425 a tonne, before trading at $29,150 from $29,150 on Friday. Vale said it will lose around 5 percent of its total 2011 nickel production due to a 16-week shutdown of a smelter furnace in Canada.
Demand for the metal used in stainless steel has also been boosted by increasing steel production globally.
Battery material lead traded at $2,662.25 from $2,665 and zinc was at $2,577.25 from $2,553.
The global zinc market was in surplus by 264,000 tonnes in calendar 2010, the latest monthly bulletin from the International Lead and Zinc Study Group （ILZSG） showed.
The global lead market was in surplus by 48,000 tonnes in the year to the end of December 2010, the Lisbon-based group said.（Source Reuters）
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