LME copper ended at $7,390/mt, up $125, having touched $7,194/mt, its lowest since December.

"It's a technical reaction, some funds decided to take a position. It shows the impact of financial investors on the market and that might also be addressed by further regulations going forward," said Commerzbank analyst Eugen Weinberg.

"There's risk aversion coming back to the market after yesterday's speech by Obama. Also, steps of the Chinese central bank towards tightening might dampen demand over the next month."

"Sentiment is a bit battered and bruised," said Charles Kernot, an analyst at Evolution Securities. "People are worried that China's going to take some rice out of the bowl, in terms of the amount of money flowing around the Chinese economy."

"If that rice bowl is taken off the table people go hungry, as it were, and commodity demand isn't there," he said.

"It indicates still decent demand in Asia," said David Thurtell, an analyst at Citi. "Copper stocks out for the last few months of last year were pretty low, and if it's picking up now, that's bringing more balance to the market."

Aluminium ended slightly down at $2,232/mt. Nickel ended at $18,310/mt, down $590, while zinc ended at $2,350/mt down $50.

Lead closed at $2,237/mt, down $18, while tin finished at $17,775/mt, up $25.