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Rising stocks knocked copper market sentiment on Friday, but analysts say expectations of strong demand growth from China will underpin the metal and possibly push prices back above $6,000 over coming days.

Nickel for three months delivery on the London Metal Exchange touched a new all-time high of $38,950 a tonne on worries about low stocks and supply shortages, while tin was hovering below this week's record high of $12,500.

Three-month copper traded down at $5,755 a tonne in the official rings from $5,850 on Thursday, when it touched a two-week high of $5,910.

"There is some profit-taking going on in copper, but it could go higher again in the afternoon," a trader said. "It's quite possible we could see $6,000 within days."

Stocks of copper in LME warehouses rose 4,325 tonnes to 207,700 tonnes, more than double the levels seen last January.

China's copper imports rose 59.4 percent year-on-year in December to 95,831 tonnes, suggesting consumers there were restocking after running down inventories through most of 2006.

"In the last week or so there's definitely been some price stability," said Adam Rowley, analyst at Macquarie Bank.

"There are some signs of increased consumer buying and obviously the Chinese import figures helped. Over the next couple of months if Chinese buying continues to pick up the market could be fairly balanced for a period."

Economic slowdown in the United States, falling demand and rising stocks have hit copper in recent months. Prices are down more than 30 percent since May's record high of $8,800.