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Copper prices fell back below 7,000 usd, having traded up earlier in the session, as traders weighed concerns that the US economic growth slowdown will crimp demand against worries over potential supply disruptions in Chile.

At 3.07 pm, LME copper for three month delivery was down at 6,947.50 usd a tonne against 6,975.00 usd at the close yesterday.

Copper prices rose earlier after BHP Billiton, the world's biggest metals miner, said it sees strong demand for copper going forward and after Japanese data showed a higher than forecast 1.6 pct rise in industrial production.

Prices have since retreated, however, as concerns over the slowdown in the rate of US economic growth continued to weigh on the market despite a stronger than expected upwards revision to third quarter US GDP growth.

'We're in a holding pattern right now. The weakness in the US (economy) is really exerting pressure on the downside and the upside is lifted by uncertainty about labour talks in Chile,' said Man Financial analyst Ed Meir.

Chile's Codelco, the world's largest copper producer, is negotiating a new labour contract with workers, as the old one expires on Dec 31. However, the talks have dragged and there has been little news out about their progress.

'I'm kind of surprised the market is not a bit more nervous given that we have not heard anything,' on the talks, said Meir.

Elsewhere, nickel was lower even after LME data released earlier showed nickel inventories, which are already at critically low levels, fell by another 96 tonnes to total 6,9564 tonnes.

The metal traded up earlier, boosted by comments from BHP Billiton that cost pressure and low labour productivity has impacted progress at its Ravensthorpe nickel mine in Western Australia.

LME nickel for three month delivery edged down to 32,800.00 usd against 33,500.00 usd at the close yesterday.

Other metals were mixed.

Three month zinc was down at 4,325.00 usd against 4,375.00 usd, tin was up at 10,300.00 usd against 10,150.00 usd, aluminium was down at 2,683.00 usd against 2,704.00 usd and lead was up at 1,617.50 usd against 1,590.00 usd.