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INE: Similarities and Differences between INE Copper Cathode Futures and SHFE Copper Cathode Futures

 Shanghai Futures Exchange (SHFE) is planning to launch bonded copper futures at its subsidiary, the Shanghai International Energy Exchange (INE). The new product will build on the experience and success of the existing SHFE copper futures without affecting it, thus creating a “dual contract” setup that aligns with China’s dual-circulation strategy. Bonded copper futures will be listed and traded on the basis of “international platform, net pricing, bonded delivery, and RMB denomination” to encourage full overseas participation.

The listing of bonded copper futures is a meaningful attempt to make SHFE’s copper futures accessible to overseas investors. At present, China has in effect two spot markets for copper: a tax-included domestic market and an on-shore (in bonded areas) bonded market. The latter is mainly situated in Shanghai and its vicinity, and is a large and highly active market with many industrial enterprises. With bonded copper futures, INE is targeting this bonded market and the international market, in order to provide copper companies around the world a new tool to manage risks.

Copper cathodes are the underlying for bonded copper futures, same as in regular copper futures. Deliverable copper cathodes must be of an INE-registered brand or of an SHFE-registered brand recognized by INE.



1. Similarities between INE Copper Cathode and SHFE Copper Cathode:







2. Differences between INE Copper Cathode and SHFE Copper Cathode:

l  Contract Specification

l  Position Limit

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