Shanghai International Energy Exchange
International Copper Futures
The CSRC (China Securities Regulatory Commission) has approved the trading of international copper futures open to foreign investors on Shanghai’s INE (International Energy Exchange).
The launch will help enhance China's pricing power over commodities and promote the internationalization of the renminbi.
The INE’s parent, the SHFE (Shanghai Futures Exchange), already has a domestic copper contract, but it is not accessible to foreign investors.
This is the fourth international futures product that the exchange has launched. Yuan-denominated crude oil futures, unveiled in 2018, were the exchange's first international product, followed by rubber and low-sulfur fuel oil futures.
Source: Shanghai Futures Exchange
About Copper Futures
The Global Copper Market
The World Bureau of Metal Statistics (WBMS) has compiled the following statistics for refined copper for 2019.
- Production – Global output totaled 23.724 million metric tons, a year-onyear growth of 0.32%. The top five producers were China, Chile, Japan, U.S., and Russia, together accounting for 64.46% of the world’s total.
- Consumption – The world’s total was 23.8183 million metric tons, down by 0.45% year-on-year. The top five consumers were China, U.S., Japan, Germany, and South Korea, together accounting for 17.226 million tons, or 72.32%, of the global total.
China’s Copper Market
In 2019, production of refined copper in China maintained the growth momentum, hitting 9.784 million metric tons, or 41.24% of the world’s total (based on WBMS’ global data).
Consumption level in China was 12.08 million metric tons, or 50.72% of the world’s total (based on WBMS’ global data).
Source: INE Product Manual
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