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[SMM Analysis] the copper option virgin Xiuxiu is highly concerned by the smelter.
Sep 21,2018 17:05CST
The content below was translated by Tencent automatically for reference.

SMM, Sept. 21: copper options, which have attracted much attention, are officially listed for trading today, becoming the first variety of industrial futures options in China. The option price kept pace with the copper price rise. According to the statistics of the previous exchange, there were 36158 copper options trading all day, the transaction value was 333 million yuan, and the position reached 10432 hands.

Transaction of main contracts of copper options on the first day of listing

The trading volume of 36000 hands reflects that copper options have been recognized by the market as a variety with a high degree of globalization and relatively transparent industrial chain, as well as previous tests of soybean meal and white sugar options. Domestic options have been recognized and have a considerable degree of participation.

It should be pointed out that the current Shanghai copper main contract 1811 today traded 254200 hands, Shanghai copper futures all contracts trading volume today at about 500000 hands. At the same time, options in foreign countries has been a very mature financial derivatives, the trading volume of options is higher than futures, so copper options today's more than 30,000 hands is just the beginning, the future market has a broad trading prospects.

SMM and the relevant copper smelter communication learned that smelters have a high degree of attention to copper options, many manufacturers have opened option accounts, currently waiting for the increase in trading volume will be involved in the transaction. The head of the futures department of a smelter said: "the current trading volume is still too small, the demand for insurance for the smelter is far from enough, after the same amount in the future, you can try to intervene slowly, ten thousand high-rise buildings rise flat on the ground."

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