Chinese copper prices firmed this week on domestic supply tightness and the State Council's announcement of capital market reforms, industry sources said Tuesday.
The most active 1406 copper futures contracts on the Shanghai Futures Exchange closed at Yuan 49,320/mt ($7,901/mt) Monday, up Yuan 490/mt from Friday.
The government announced reforms Saturday designed to strengthen bond issuance by developing various types of bonds to meet different investors' needs. It also urged development of new financial derivatives and increased foreign investment.
"The state reforms move has boosted market players' confidence, so [it is] lifting copper prices," said Jack Yeung, a business professor with City University of Hong Kong, adding that copper prices would likely rise further this week.
Chinese industry analysts said this year's devaluation of the yuan has hampered imported copper trade and tightened spot supply.
On Tuesday, the dollar was trading at Yuan 6.24, compared with Yuan 6.0541 in early January.
