The international price influence of "Shanghai Copper" continues to increase

The first international copper futures contract BC2103 was successfully delivered, with a delivery volume of 6,225 tons and an amount of 370 million yuan. At this point, the international copper futures business processes have all gone through, and various rules have withstood market tests.

On November 19 last year, international copper futures were officially listed on the previous period of energy, using "international platform, net price trading, bonded delivery, renminbi pricing" as the listing model, fully introducing foreign investors to participate, filling the copper industry chain for international trade renminbi pricing The blankness of hedging instruments is also the first time that China’s futures market has achieved internationalization in the “dual contract” model.

Fill in the gap, RMB denominated to meet risk management needs

Since its listing, the international copper futures market has generally been operating steadily, with a steady increase in scale, a reasonable investor structure, and market functions have been gradually brought into play. As of March 15 (the last trading day of the BC2103 contract), a total of 77 trading days have been run, with a total of 1.5338 million transactions, a cumulative transaction value of 414.302 billion yuan, an average daily transaction volume of 19,900 contracts, and an average daily transaction value of 5.381 billion yuan. The average position is 19,200 lots.

On March 12, the last issue of Energy approved the registration of "MONYMA LPT" brand cathode copper produced by Wanbao Minerals (Myanmar) Copper Co., Ltd. This is the first newly-added internationally registered brand since the product was launched, and it has an impact on the price of "Shanghai Copper" The force radiating the Asia-Pacific region will have a positive impact. Up to now, there are 52 registered and deliverable brands in international copper futures, including 21 domestic brands and 31 overseas brands; there are 7 designated delivery warehouses located in the special supervision area of ​​Shanghai Customs, and the futures inventory as of March 15 is 6,378 tons.

Market participants believe that international copper futures provide new risk management tools for the global copper industry chain, providing transparent and fair international market prices denominated in RMB to better meet the risk management needs of domestic and foreign entities and investment institutions. International copper futures and Shanghai copper futures on the Shanghai Futures Exchange have formed a joint force to serve the domestic and foreign bonded and offshore copper markets as well as the domestic copper market through "dual contracts", which is of great significance for enhancing the price influence of China's copper industry.

Duan Shaofu, Director of the Heavy Metals Department of the China Nonferrous Metals Industry Association and Secretary-General of the Copper Branch, said that the introduction of international copper futures has filled the gap in the renminbi-denominated hedging instrument for international trade in the copper industry chain. “Although the time to market is short, the market scale is steadily increasing. The improvement and the initial function. We encourage leading domestic and foreign companies to use international copper futures prices as the benchmark price in international copper trade and copper resource exporting countries in their trade with China, so as to effectively increase the price influence of important commodities."

Open up the closed loop, give full play to functions and serve the new development pattern

Participating in the first settlement yesterday included domestic and foreign companies such as Jiangxi Copper, China Copper International Trade, Minmetals Nonferrous Metals, Trafigura Investment (China), LOBB HENG PTE LTD, EAGLE METAL INTERNATIONAL PTE.LTD.

Wu Kunjin, a copper researcher at Minmetals Jingyi Futures, said that the successful completion of the first delivery of international copper futures means that the closed loop between futures and spot is successfully opened up, which is not only conducive to the function of international copper futures, but also beneficial to domestic and foreign enterprises to make better use of it. Futures tools carry out risk management. In this delivery, both domestic and overseas customers of China Minmetals Economic and Trade Corporation showed a high degree of enthusiasm for participation, and some customers participated in the first delivery of international copper.

The relevant person in charge of the Shanghai Futures Exchange stated that with the expansion of transaction scale and the optimization of market investor structure, international copper futures will promote the deep integration of domestic and foreign copper industry chains and supply chains, and expand the settlement of RMB in international physical trade and financial markets. Play a greater role in scale and other aspects.

In the next step, the Shanghai Futures Exchange and Shanghai Futures Energy will further strengthen market supervision and risk prevention, do a good job in investor education and market cultivation of Shanghai copper and international copper futures, optimize contract rules based on contract operation and market demand, and study the establishment of international Implementation plan for copper futures delivery warehouse. Actively promote enterprises to use international copper futures prices as benchmark prices in international copper trade and major copper resource exporting countries in their trade with China to better serve the new development of "domestic large circulation as the main body, domestic and international dual circulation mutual promotion" The pattern plays an important role in enhancing the price influence of China’s copper industry.