The first delivery of international copper futures has been successfully completed.

On March 22nd, BC2103, the first international copper futures contract of the last phase of energy, successfully completed delivery, with a delivery volume of 6225 tons, with an amount of 370 million yuan.

Participants in the delivery include Jiangxi Copper, China Copper International Trade, Minmetals Nonferrous Metals, Trafigura Investment (China), LOBB HENG PTE LTD and EAGLE METAL INTERNATIONAL PTE.LTD.. And other domestic and foreign enterprises. At this point, the international copper futures business process is all open, and the rules have withstood the market test.

On November 19, 2020, international copper futures were officially listed for trading in the last period of energy, taking "international platform, net price trading, bonded delivery and RMB valuation" as the listing mode, with the participation of foreign investors in an all-round way. it fills the gap in RMB pricing and hedging tools for international trade in the copper industry chain, and it is also the first time that China's domestic futures market has internationalized in the "double contract" mode.

According to the Futures Daily reporter, since the listing, the overall operation of the international copper futures market has been stable, the scale has expanded steadily, the investor structure is reasonable, and the market function has been gradually brought into full play. As of March 15 (the last trading day of the BC2103 contract), international copper futures have been operating for 77 trading days, with a total turnover of 1.5338 million hands, a cumulative turnover of 414.302 billion yuan, an average daily turnover of 19900 lots, an average daily turnover of 5.381 billion yuan, and an average daily position of 19200 lots.

On March 12, the last phase of energy approval approved the registration of "MONYMA LPT" brand cathode copper produced by Wanbao Minerals (Myanmar) Copper Co., Ltd., which is the first new international registered brand since the listing of international copper futures, which has a positive impact on the influence of Shanghai copper prices in the Asia-Pacific region. So far, there are 52 registered and deliverable brands in international copper futures, including 21 domestic brands and 31 overseas brands, and seven designated delivery warehouses located in the special supervision area of Shanghai Customs. Futures inventory is 6378 tons (as of March 15).

Market participants believe that international copper futures provide a new risk management tool for the global copper industry chain and provide transparent and fair international market prices denominated in RMB, which better meet the risk management needs of entity enterprises and investment institutions at home and abroad. International copper futures and Shanghai copper futures form a joint force to serve the domestic and foreign bonded market and offshore copper market as well as the domestic copper market through "double contracts", which is of great significance to enhance the price influence of China's copper industry.

According to Duan Shaofu, director of the heavy metals department of the China Nonferrous Metals Industry Association and secretary-general of the copper branch, China is the world's largest consumer of refined copper, but due to the congenital shortage of resources, it needs to import a large amount of copper ore and copper metal, and the degree of external dependence of copper raw materials is more than 70%. At present, China is still controlled by others in the benefit distribution of the copper industry chain, so we need to strengthen the Chinese market factors and enhance the pricing power and price influence of the copper industry through the joint efforts of the spot and futures markets. In his view, the launch of international copper futures filled the blank of RMB pricing and hedging tools for international trade in the copper industry chain. Although the listing time is relatively short, the market scale has steadily increased and the function has initially emerged.

"leading enterprises at home and abroad are encouraged to use international copper futures prices as benchmark prices in copper international trade and copper resource exporters in their trade with China, so as to effectively enhance the price influence of important commodities." Duan Shaofu said.

As a member of GTP (Global Trade Plan) of Singapore's Ministry of Trade and Industry, Heng Group (LOBB HENG GROUP) participated in the delivery as a seller's enterprise. Wu Shaomin, general manager of the group in China, said that the company actively participated in the hedging business of the last stock exchange and the previous period of energy. Since the listing of international copper futures, it has formed a good complementarity with Shanghai copper futures, so the "double contract" service "double cycle" in the last period provides a convenient platform for foreign enterprises to directly participate in the trading of non-ferrous metals market in China. It is closer to the pricing mechanism of end-users and places of consumption and uses RMB as the settlement currency, which provides convenience for enterprises to manage price and exchange rate risk and strengthen the value management of the supply chain.

As the representative of the buyer's enterprise participating in the delivery, China Copper International Trade is the marketing integration platform of China's copper industry, shouldering the raw material procurement and copper sales of three smelters with a total capacity of 1.3 million tons, and is the largest copper concentrate importer and copper trader in China. According to Miao Yuanxian, a copper researcher at the China Copper International Trade Market Research and Development Center, international copper futures add tools for the company's hedging and facilitate the company's risk management of copper prices and exchange rates. "the delivery of international copper has promoted the combination of futures flow and spot flow, which means that RMB pricing has appeared in spot transactions in areas under the special supervision of Chinese customs. International copper futures have a market influence on copper spot trade in areas under special customs supervision. It is believed that in the future copper international trade, there will be more and more application scenarios that use the international copper futures price as the pricing benchmark. " She said.

As a representative of member units providing delivery services, Ji Xianfei, a senior researcher at Guotai Junan Futures, said that since the listing of international copper futures, the overall market participation has increased steadily, and the price has been linked with Shanghai Copper and Lun Copper, but there are differences in fluctuations, attracting industrial enterprises to choose superior prices for hedging and investment enterprises to carry out arbitrage. This delivery will help enterprises to grasp the international copper futures delivery process and detailed operational details, help to connect the industry, futures companies, warehousing, logistics, inspection and other parties, to ensure that storage, out of storage and other links are carried out in an orderly manner. As the trading and delivery processes are widely known by market participants, the role of international copper futures in serving the real economy will be more significant, and market participation will be further enhanced.

"the smooth completion of the first delivery of international copper futures means the smooth opening of the closed loop between futures and spot, which is not only conducive to the exertion of the function of international copper futures, but also helps relevant enterprises at home and abroad to make better use of futures tools to carry out risk management." Wu Kunjin, a copper researcher at Minmetals Economic Exchange Futures Co., Ltd., said that during this delivery, the company's domestic and overseas customers showed a high enthusiasm for participation, and some customers participated in the delivery. Through this delivery, the company and corporate customers quickly mastered the complete delivery process and gained valuable experience, which laid a more solid foundation for the company to promote more enterprises to participate in international copper futures and better serve industrial customers in the future.

"the listing of international copper futures fills the gap of copper trade value preservation tools in the special areas under customs supervision, and connects the copper markets at home and abroad, which is of great significance. This variety has been widely concerned by the market since it was put on the market. At present, the average daily turnover of the main contract is close to 20,000, which can be said to have achieved good results in a short period of time. " Li Li, research director of Jinrui Futures Research Institute, said that international copper futures have gone through all processes, accumulating more practical experience for enterprises, and will attract more physical enterprises to participate in trading and delivery, thus deepening the function of serving the real economy.

Wang Haibin, chairman of Heng Ruibao warehousing (Shanghai) Co., Ltd., a representative of the designated delivery warehouse, said that the system design of pricing and settlement of international copper futures in RMB provides a new platform for domestic upstream smelters, traders, downstream terminal manufacturers and financial institutions, while the supporting design of bonded delivery provides a more diversified choice for the trend of copper spot after delivery. "among the enterprises participating in this delivery, there are not only well-known smelting enterprises in the territory, but also well-known traders at home and abroad, with a wide range of industry representativeness. With the participation of more domestic and foreign participants, the price discovery function of international copper futures will be further reflected. " Wang Haibin said.

As a representative of the designated delivery and settlement Bank, Wang Jinwen, head of the Trading Banking Department of Bank of China Shanghai Branch, said that the Bank of China once again adopted the collectivized service model of "Commercial Bank + domestic Bank of China Futures + overseas Bank of China International". Successfully helped market participants at home and abroad to complete the whole process of international copper futures trading, accumulating valuable experience for providing more efficient, comprehensive and professional financial support and services.

Lin Zhencheng, head of structural trade and commodity financing at the institutional banking services department of the United overseas Bank Group, as a representative of overseas banks, said that China is gradually becoming an international pricing center for non-ferrous metals and its influence is growing. RMB-denominated international copper futures will further enhance the transparency, liquidity and linkage between market participants in all aspects of the supply chain and end-users in China.

The relevant person in charge of the Shanghai Futures Exchange said that with the expansion of the transaction scale and the optimization of the market investor structure, international copper futures will play a greater role in promoting the deep integration of domestic and foreign copper industry chains and supply chains, and expanding the settlement scale of RMB in international physical trade and financial markets. In the next step, the Shanghai Futures Exchange and the previous period of Energy will further strengthen market supervision and risk prevention, do a good job in investor education and market cultivation for Shanghai copper futures and international copper futures, and optimize contract rules according to contract operation and market demand. to study the implementation plan of setting up international copper futures delivery warehouses abroad. Actively promote enterprises to use international copper futures prices as pricing benchmarks in future copper international trade and major copper resource exporting countries in their trade with China, better serve the new development pattern of "domestic circulation as the main body and domestic and international double cycles promote each other", and play an important role in enhancing the price influence of China's copper industry.