The most-traded April copper contract on the Shanghai Futures Exchange closed up 0.7 percent to 57,550 yuan ($9,200) a tonne on Thursday. SHFE, China's only metals futures exchange, plans to open up to foreign institutions and develop options and other derivative contracts under a plan to become a leading Asia-Pacific bourse over the next five years.

Some cautioned that the thin holiday trade exaggerated the price movement, while the physical market remained sluggish. "Trading volume in the physical market is quite slow as traders are tight on cash near the year end," said a Shanghai-based trader. "I don't see any significant change on the macroeconomic environment or policy." Discount in physical copper to Shanghai front-month futures contract widened to 400 yuan, suggesting sluggish buying interest in the physical market.

Copyright Reuters, 2012