Building a Service Ecosystem for the Copper Industry to Address Industry Needs and Pain Points - Introduction to the Business of the Secondary Copper Trading Service Center in the World Copper Capital

Published: Apr 22, 2025 16:53

On April 22, at the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo—Electrical Transmission and Distribution Industry Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Shanghai Nonferrous Metals Trading Center, and Shandong Aisi Information Technology Co., Ltd., with Jiangxi Copper Corporation and Yingtan Inland Port Holdings Co., Ltd. as the main sponsors, Shandong Humon Smelting Co., Ltd. as a special co-organizer, and Xinhuang Group and Zhongtiaoshan Nonferrous Metals Group Co., Ltd. as co-organizers, Dong Junhao, General Manager of the Market Development Department of Jiangxi Copper Digital Service Co., Ltd., shared the theme "Building a Copper Industry Service Ecosystem to Address Industry Pain Points—Introduction to the Business of the World Copper Capital Secondary Copper Trading Service Center."

I. Industry Pain Points

1.1 Pain Points in the Secondary Copper Industry

Secondary copper traders: Working with the anxiety of dealing in high-risk goods but earning minimal profits!

1.2 Pain Points in the Secondary Copper Industry

Large price fluctuations: price risks, supply-demand mismatch, diverse demands, tariffs, and trade wars;

Capital-intensive: high cargo value, large demand, financing difficulties, and high costs;

Direct hedging tools: default risks, hedging needs, spot purchases, and futures contracts;

Third-party platforms: quasi-public attributes, credit endorsement, fund supervision, and risk control systems.

The solution—Digitalization is the trend! Commodity trading platforms are the remedy!

II. Building a Copper Industry Service Ecosystem

2.1 Building a Copper Industry Service Ecosystem

Thinking only identifies problems; action provides the answers! — Establishing the World Copper Capital Secondary Copper Trading Service Center in Guixi, building a copper industry service ecosystem, and creating a globally influential digital intelligence service platform for the copper industry!

2.2 Building a Copper Industry Service Ecosystem

2.3 Copper Industry Service Ecosystem

►Copper Industry Service Ecosystem

1. Trading Services: Capacity pre-sale, listing transactions, auction trading models, etc.

2. Supply Chain Financial Services: Relying on the trading platform, upstream and downstream industries, domestic and overseas warehouses, and financial institutions to build a commodity trading ecosystem and provide supply chain financial services.

3. Matchmaking Transactions: The trading platform connects supply and demand for upstream and downstream enterprises, leveraging regional, team, and platform advantages to establish efficient and extensive buyer-seller information matching and matchmaking. Additionally, it provides services in supply chain finance, overseas warehousing, customs clearance, and more.

4. Commercial Services: Offering services such as company registration agency, bookkeeping agency, and tax rebate incentives for enterprises needing registration in Hainan.

5. Technology Export: Provide co-construction platform technology and operational support to local governments and enterprises.

III. Introduction to the Copper Industry Service Ecosystem Business

3.1 Business Introduction - Capacity Presale

● Certified traders on the trading platform actively list prices and quantities to sell or buy spot cargo or contracts for future delivery. Other trading members can choose quantities to buy or sell spot cargo or contracts, with the flexibility of early agreed delivery, on-the-spot contract transfer, and delivery at maturity!

● Expand corporate sales and procurement channels; reduce credit default risks through deposit transactions; flexible delivery with simultaneous spot and forward transactions; and empower supply chain finance.

3.1-1 Business Introduction - Capacity Presale

► Thirteen Delivery Brands

Based on industry characteristics and the convenience of delivery brands being close to upstream and downstream clusters, brass billet varieties are mainly centered in the Zhejiang region, with six delivery enterprises. There are seven delivery enterprises for low-oxygen copper rods, covering major copper rod processing regions in North China, Southwest China, East China, and Central South China.

► Eight Delivery Warehouses

To facilitate delivery for industrial clients, eight designated delivery warehouses have been certified by the Exchange, mainly at national and CMST warehouses in downstream demand areas, to meet delivery and supply chain financing business needs.

3.1-2 Business Introduction - Capacity Presale

3.2 Business Introduction - Supply Chain Finance

Build a commodity trading ecosystem relying on the trading platform, upstream and downstream of the industry, domestic and foreign warehouses, and financial institutions to provide supply chain financial services.

3.2-1 Business Introduction - Supply Chain Finance

Provide one-stop services, covering the entire trade process from overseas resource sourcing, overseas transportation and warehousing, maritime transportation, customs clearance, and inland transportation, to create comprehensive trade process services for partner enterprises.

Connect terminal power plants with traders to address short-term funding gaps for traders due to power plant payment delays, alleviate traders' financial pressure, and ensure the cycle and normal operation of businesses.

3.3 Corporate Commerce

3.4 Business Introduction - Supply Chain Solutions

Taking the platform of Jiangxi Tongdu Digital Service Co., Ltd. as a model, relying on the platform of the Exchange, and integrating with the characteristics of local industry chains, we will integrate resources and capabilities across trade, warehousing, finance, and other sectors around the upstream and downstream of the local non-ferrous metal industry chain. We will build comprehensive supply chain solutions in the local area for raw material procurement, resource sales, logistics, financing, and other businesses.

3.5 Partner Enterprises (Partial)

IV. Introduction to Jiangxi Tongdu Digital Service Co., Ltd. and the Exchange

4.1 Establishment of Jiangxi Tongdu Digital Service Co., Ltd.

On May 26, 2023, leaders from Guixi City, known as the "World Copper Capital," visited the Hainan International Commodity Exchange (hereinafter referred to as the Exchange) for research and exchanges. They proposed that, from the perspective of long-term industrial development and building industrial influence, with secondary copper as a feature, we should fill the gap in the copper raw material trade industry. Relying on the platform advantages of the Exchange, we will establish the World Copper Capital Secondary Copper Trading Service Center in Guixi and create a globally influential copper industry digital intelligence service platform!On June 13, 2024, Jiangxi Tongdu Digital Services Co., Ltd. (also known as the World Copper Capital Secondary Copper Trading Service Center) was inaugurated. Numerous leaders and guests from domestic and overseas industries, including China Communications Construction Group, Hainan International Commodity Exchange, leaders from Guixi City, Daye Nonferrous Metals Group, Jintian Copper Co., Ltd., Hailiang Group, Trafigura, and others, attended the inauguration ceremony. This marks a milestone in the development of the World Copper Capital Secondary Copper Trading Service Center!

On December 19, 2024, the People's Government of Yingtan Guixi City, Hainan International Commodity Exchange Co., Ltd., and Jiangxi Tongdu Digital Services Co., Ltd. signed a strategic cooperation agreement in Sanya. The agreement aims to leverage the resources and policy advantages of the three parties, deepen regional development cooperation, focus on the goal of "setting an example and striving for excellence," build "three major highlands," implement "five major strategies," and unwaveringly promote high-quality development.

It also introduced the shareholder structure of Jiangxi Tongdu Digital Services Co., Ltd.

4.1-2 Development Vision of Jiangxi Tongdu Digital Services Co., Ltd.

Serving the Industry, Non-Standard Hedging, Digital Copper Capital: Based in Guixi and rooted in Guixi's secondary copper industry, the company aims to form a complementary development with the futures and spot trading platforms of the Shanghai Futures Exchange and the Central China Nonferrous Metals Exchange Center, creating a differentiated market supporting service system. Starting from serving the hedging needs of non-standard products and serving the real economy, it will form unique competitive advantages. Relying on the advantages of Guixi and Hainan in policies, industries, platforms, and resources, it will jointly build a secondary copper trading service center and pricing center, forming a globally influential "Digital Copper Capital" and the Guixi Index!

4.2-1 The Mission of Hainan International Commodity Exchange

In line with the spirit of General Secretary Xi Jinping's important speech on April 13 and the Central Document No. 12, and with the full support and promotion of Sanya City and the Provincial Financial Bureau, the Hainan International Commodity Exchange was established as a comprehensive commodity trading venue in accordance with the planning of the "Overall Plan for the Construction of the Hainan Free Trade Port" to "promote the development of related over-the-counter derivatives businesses based on the construction of the Hainan Free Trade Port." It is a core member of Sanya's efforts to build a financial name card of "one exchange and three centers."

4.2-2 Development History of Hainan International Commodity Exchange

4.2-3 Product Categories of Hainan International Commodity Exchange

Energy and Chemicals, Metals and Minerals, Agriculture, Forestry, Animal Husbandry, and Fisheries, Digital Services and Trade.

5.1 Trading Client of Hainan International Commodity Exchange

Hainan International Commodity Exchange provides trading enterprises with diverse trading software, supporting functions such as capacity pre-sales, listing trading, inquiry of trading in centralized trading markets, capital inflows and outflows, capital inquiry, settlement, contract buying and selling volumes, agreement downloads, and inquiries.

• Capacity Pre-sales - Trading of brass billets and low-oxygen copper rods provides downloads for PC, mobile, Boyi Master, Jinwang Android, and 10S version clients.

•Fairs Business - Trading Hall on the Official Website of the China Marine Commodities Exchange.

•Listing Trading - Trading Hall on the Official Website of the China Marine Commodities Exchange


》Click to view the special report on the 20th CCIE-2025SMM Copper Industry Conference & Exposition

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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