Shanghai copper futures rose Thursday based on strong seasonal demand and speculation that the government would introduce new stimulus measures.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) for July delivery closed at 44,240 yuan ($7,120) per ton Thursday, up 410 yuan from the previous day. On a weekly basis, the contract was up 2.52 percent. The SHFE was closed Friday for the May Day holidays.

China's official purchasing managers' index (PMI) for the manufacturing sector remained at 50.1 in April, the same as the previous month, signaling the world's second largest economy is maintaining slow growth, according to data released Friday by the China Federation of Logistics and Purchasing.

Copper inched up on strong seasonal demand and speculation that the Chinese government would push forward fresh stimulus policies to boost the economy, according to a Reuters report Friday.

The metals market was mixed. Base metals such as copper closed higher, but gold lower.

"Subdued demand is likely to constrain copper's upside in the shorter term," according to a note Thursday by ANZ Banking Group. "In particular, tighter credit and a weaker currency have made copper inventory financing less attractive in China, with import demand likely to be subdued in coming months."

However, oversupply continues to weigh on copper prices. The refined copper market balance in January showed a surplus of 59,000 tons, compared with a production deficit of 142,000 tons in January 2014, according to data released Tuesday by the International Copper Study Group, an intergovernmental organization that tracks the copper market.

In January, there was a surplus of around 56,000 tons of refined copper in Chinese bonded warehouses, compared with a deficit of around 90,000 tons in January 2014, the data showed.

Global Times