SHANGHAI, Mar. 21 (SMM) – The Shanghai Futures Exchange (SHFE) issued the Announcement on the Issuance of the Amendments to Copper Cathode, Aluminum, Zinc and Lead Futures Contracts.
The key amendment to aluminum futures contracts on the SHFE is to the removal of delivery restriction on the weight of aluminum ingot at 25KG by expanding the weight range to 15Kg±2Kg, 20Kg±2Kg or 25KG±2KG.
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Transaction fee, which previously requires to equal or below 0.02 % of transaction value (Risk reserve included), is removed, in addition to changes in names of futures contract and appendix.
What's influence from the amendment?
"New domestic aluminum brands will be added to the deliverable list to SHFE’s registered warehouses this year after the amendment, with increment volumes in deliverable brands expected to exceed 5 million tonnes,” SMM aluminum analyst predicts.
Xinfa Aluminum, Shenhuo Coal&Power, Tianshan Aluminum, and East Hope Aluminum will likely be allowed to deliver goods to the exchange within the year.
The amendment will come into effect March 27, 2017.
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