MARKETS-METALS (UPDATE 7) * China's economic growth quickens in Q4 * Aluminium stocks hit new record * Copper stocks rise to highest since February 2009 (Updates prices, adds analyst comment, details) By Maytaal Angel and Rebekah Curtis LONDON, Jan 21 (Reuters) - Copper rose on Thursday as the dollar pared gains after a rise in U.S. jobless claims, while bullish growth data from China boosted investors' confidence about the demand outlook. However, some market players worry that robust growth in China could trigger further monetary tightening that could stem demand from the world's top copper consumer. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,401 at 1411 GMT, from $7,375 on Wednesday. The dollar pared gains slightly against the yen after data showed U.S. jobless claims rose by more than expected in the latest week. Dollar strength makes commodities priced in the U.S. currency costlier for non-U.S. investors. "There is a negative correlation between commodities and the U.S. dollar," said Eugen Weinberg, an analyst at Commerzbank. "But that link is definitely weaker than it used to be." He said Commerzbank expects the dollar to strengthen through the year, which will likely dampen sentiment towards commodities. Data showed that China's annual gross domestic product surged 10.7 percent in the fourth quarter, with analysts saying it was only a matter of time before Beijing took more monetary policy steps. "We've entered a sort of glass half empty period in the last week or so. The Chinese numbers were great but people are focusing on the tightening in China," said David Thurtell, analyst at Citigroup. Copper fell nearly 3 percent on Wednesday after Chinese authorities ordered some major banks to curb lending and as the euro sank against the dollar. Concerns that Beijing will step in to tighten credit have triggered flight-to-quality buying into the dollar this week, weighing on metals. "Although we expect China to continue to deliver high GDP numbers over the long term, GDP data may experience a bumpier ride over the next 2-3 years," Baring Assett Management said in a note. "Some growing pains are inevitable." Data showed China's imports of refined copper rose 25.5 percent on the month in December, fuelled by strong domestic prices and the arrival of term shipments. Also boosting copper, China's production of refined copper fell 0.6 percent in December from November's record. For a table of China's base metal trade summary, click STOCKS SOAR Indicating demand for copper remains weak outside China, latest data showed LME copper stocks rose 8,000 tonnes to total 534,650 tonnes, the highest since February last year. "I think we'll stick (near term) in ranges traded since mid-November," said Citigroup's Thurtell, citing rising copper stocks, tighter monetary policy in China and a sluggish recovery in western countries. Aluminium, used in transport and packaging, was at $2,255 a tonne from $2,267. Aluminium stocks hit a new record, rising 18,525 tonnes to 4.64 million tonnes, but analysts said most of the stock remains tied up in financing deals, while there are signs demand from automakers is recovering. Zinc was at $2,477.50 a tonne from $2,444, while battery material lead was at $2,312 from $2,295, having hit $2,272.75 earlier, its lowest since early December. Tin was at $17,950 from $17,775, and stainless-steel making ingredient nickel was at $18,930 from $18,805. Metal Prices at 1410 GMT Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 335.50 0.90 +0.27 332.75 0.83 LME Alum 2249.00 -18.00 -0.79 2230.00 0.85 LME Cu 7391.00 16.00 +0.22 7375.00 0.22 LME Lead 2300.00 5.00 +0.22 2432.00 -5.43 LME Nickel 18800.00 -5.00 -0.03 18525.00 1.48 LME Tin 17775.00 0.00 +0.00 16950.00 4.87 LME Zinc 2470.00 26.00 +1.06 2560.00 -3.52 SHFE Alu 17465.00 55.00 +0.32 17160.00 1.78 SHFE Cu* 60950.00 -50.00 -0.08 59900.00 1.75 SHFE Zin 20730.00 -65.00 -0.31 21195.00 -2.19 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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