LME copper closed on Friday at $7,500/mt, up $70.

Copper stocks fell for the first time since late October.

"People are still cautious (but) it's broadly positive on the demand side," said Charles Kernot, an analyst at Evolution Securities. "I don't see that being able to continue long term," he said. "There will be some interest rate tightening and that will have knock-on effects on investors' abilities to hold long metals positions."

"However, we believe the incremental buying from this positive arbitrage ratio will be first supplied by the stock built up in bonded warehouses in China rather than taking material from the LME warehouses," the analysts said.

Aluminium ended almost unmoved at $2,303.5. Nickel finished at $18,890, up $290, while lead ended at $2,465, up $25. Zinc ended at $2,480, up $10 and tin was last bid at $17,980, down $120.