Shanghai Futures Exchange copper ended up by 0.2 percent at 35,980 yuan ($5,568) a tonne on Tuesday as the dollar fell, while encouraging economic signals from China were offset by a looming slowdown in seasonal demand. In China, fresh tax reforms are set to come in on May 1, which will help support the economy and speed up structural adjustments, Vice Finance Minister Shi Yaobin said on Tuesday, playing down concerns such reforms could fan property speculation.
"Overall the commodities complex has been trending up since the beginning of the year on signs that China will avoid a hard landing," said Amy Li, economist, National Australia Bank in Melbourne. "Sentiment is supportive for copper. In the near term, we see copper as neutral with a positive bias." Signs in China's physical market were also looking positive, with local metal trading at a premium to front month ShFE futures for the past four sessions - the most constructive showing since early December.
Still, reflecting persistent pressure on metals consumers, state-owned China Railway Materials Co Ltd said on Monday it has sought to suspend trade in 16.8 billion yuan ($2.60 billion) worth of its debt instruments as the company struggles to make payments.
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