More of the world’s copper looks likely to be priced in China from next year, with the Shanghai International Energy Exchange (INE) set to launch a new contract tradable by international market participants. The decision to launch, pending regulatory approval, would enable market participants based outside China to trade copper based on a Chinese price, sources told Fastmarkets China, which is the world’s leading consumer of copper and many other commodities, has moved to internationalize the trading of its commodity futures in part to promote the use of the Renminbi beyond its borders. But an internationally traded Chinese copper contract could also have profound impact on the global copper market by expanding the current Shanghai Futures Exchange price into a regional benchmark and encouraging greater arbitrage with more global contracts, market experts said.
展开▼
