Copper rose for the first time in four days on Wednesday, as talk of an imminent Greek debt deal and encouraging US, Chinese and German manufacturing data fed investors' appetite for risk.

Rallying over one per cent on the day, copper moved back up toward its 200-day moving average and stood near the top of gainers in the Thomson Reuters-Jefferies CRB index after data showed the pace of growth in US manufacturing picked up in January to its highest level since June as new orders improved.

The first growth in German manufacturing in four months and an unexpected expansion in China's vast factory sector in January provided additional momentum to copper's advance, while propping up European and US equities.

"The manufacturing data was a touch better than in December; this is the key reason propping up metals," said VTB Capital analyst Andrey Kryuchenkov. "I expect the $8,300-8,600 range to hold though, as copper consolidates below recent highs."

London Metal Exchange (LME) benchmark copper rose $US120 or 1.4 per cent to close at $US8,440 per tonne, well within reach of last Friday's four-month peak at $US8,679.50 a tonne on Friday.

In New York, the key March COMEX contract climbed 5.20 US cents to settle at $US 3.8420 per lb, near the upper end of its $US3.7630 to $US3.8480 session range. It touched its priciest level in four months last Friday at $US3.9390.

The official China PMI inched up to 50.5 in January from 50.3, but new export orders fell sharply, underscoring the troubles in Europe.

"As external demand is now fading clearly, Chinese exporters are facing increasing difficulties," China's Finance Minister Xie Xuren said in remarks on Wednesday.

Dennis Gartman, a veteran commodities investor who went long copper earlier in the month, said the Chinese figures were "a bit less than enthusiastic", but anticipated another round of stimulus measures from Beijing if China's economic growth engine shows further signs of slowing.

"It's not a question of if they will, it's only a matter of when," he said.

Copper found further support in the currency markets, where the euro rose to a session high against the dollar amid renewed optimism that Greece will reach a deal with its creditors. A weaker dollar makes copper prices cheaper for holders of other currencies.

Greek Finance Minister Evangelos Venizelos said talks with private creditors on a bond swap deal that is key to the country avoiding an unruly default were "one formal step away."

Copper's bullish trend of inventory withdrawals provided another layer of support. Stocks of copper in LME-monitored warehouses fell by another 1,525 tonnes, according to latest data, hitting their lowest since 18 September 2009, at 329,300 tonnes.

Outflows of the metal in LME warehouses in the United States could signal an improvement in industrial demand, but traders seeing little appetite from top consumer China queried the bullish credentials of the indicator.

Copper prices are also likely to gain support from a looming strike by workers of one union at Teck Resources Ltd's Chilean Quebrada Blanca mine, which produced 86,200 tonnes of copper in 2010. The workers have ratified strike action after contract negotiations with the firm broke down, a union leader said late on Tuesday.

A labour stoppage at Quebrada Blanca would come on the heels of a wave of mine strikes last year which battered output in top copper producer Chile.

"While this year could see a pick-up in global production, copper mine supply remains vulnerable to disruptions," Credit Suisse said in a research note.

In other metals, BHP Billiton said Wednesday that it would cut staff and reduce mine activity at its Nickel West unit in Australia in response to weak prices and the impact of a strong Australian dollar.

Overall nickel production was unlikely to change since the company will draw on existing stockpiles of nickel concentrate to make up for the shortfall while operating at the reduced level, a spokeswoman said.

Nickel firmed $US120 to finish at $US20,975 a tonne.

Metal Prices at 1859 GMT (0559 Thursday AEDT)

Metal Last Change Pct Move End 2011 Ytd Pct

move

COMEX Cu 383.95 4.95 +1.31 343.60 11.74

LME Alum 2265.00 26.00 +1.16 2020.00 12.13

LME Cu 8439.00 119.00 +1.43 7600.00 11.04

LME Lead 2234.50 21.50 +0.97 2035.00 9.80

LME Nickel 20975.00 120.00 +0.58 18710.00 12.11

LME Tin 24150.00 -195.00 -0.80 19200.00 25.78

LME Zinc 2131.00 25.00 +1.19 1845.00 15.50

SHFE Alu 16215.00 -90.00 -0.55 15845.00 2.34

SHFE Cu* 59500.00 -1120.00 -1.85 55360.00 7.48

SHFE Zin 15775.00 -290.00 -1.81 14795.00 6.62

** Benchmark month for COMEX copper

* 3rd contract month for SHFE AL, CU and ZN

SHFE ZN began trading on 26/3/07