Shanghai to expand storage for copper and aluminum to boost trade hub status

Bloomberg reported that Shanghai will increase storage for metals at bonded warehouses as much as fivefold, lowering costs for commodity trading and potentially boosting shipments into the world’s largest consumer of copper.

Mr Wang Xinling vice chairman of the Shanghai Free Trade Zones Administration said “As we expand our physical and futures-related trading businesses, it’s likely to become a globally influential price forming center for certain commodities when trading volumes become large enough.”

He said that “The exchange may consider expanding the pilot program to other commodities as well and this is also what we want to do. Ten major industry players, including Trafigura, Citi, Jiangxi Copper and Xi’an Maike have registered within the free trade zone, and we believe their participation will bring more industry players.”

Mr Wang said “The exchange may consider expanding the pilot program to other commodities as well and this is also what we want to do. Ten major industry players including Trafigura, Citi, Jiangxi Copper and Xi’an Maike have registered within the free trade zone and we believe their participation will bring more industry players.”

Mr Su Li president of Jiangxi Copper International Trading Co said “Bonded warehouse storage facilitates exports and helps us to avoid currency risks, so it’ll be easier for overall international trade as we exploit arbitrage opportunities.”

The company is a unit of China largest copper producer.

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