Author: Paul Ploumis
27 Nov 2014 Last updated at 02:33:21 GMT
BEIJING (Scrap Monster): The Shanghai Futures Exchange has announced that it expects to launch its Tin contract by early next year. According to Mr.Ye Chunhe, Vice General Manager, the SHFE application for Tin contract is already lodged with China Securities Regulatory Commission (CSRC). The trading on Tin contract is expected to commence in early-2015 subject to CSRC nod.

The proposed Tin contract is intended to provide better hedging method for domestic enterprises and develop price transparency. Moreover, the launch is most likely to stimulate investment demand for Tin. The contract size will be fixed at 1 tonne, much smaller when compared to other base metal contracts that currently trade on SHFE. The contract would be traded continuously over 24 hours once launched. Incidentally, China is the world’s top producer and consumer of Tin.

The listing of the Tin contract has been widely welcomed by the Chinese Tin industry participants. According to Yunnan Tin Group, the registration of tin brands on the Exchange would bring more recognition from across the world to Chinese smelters. Other tin companies in the country too announced that they are keenly awaiting the launch of the contract.

The launch of Tin contract would expand the SHFE operations. The Exchange presently offers trading on 12 futures contracts including other base metals such as copper, aluminum and steel.