Shanghai copper delivery warehouse trades in four markets

A designated delivery warehouse for Shanghai copper from the Shanghai Futures Exchange recently issued its first warehouse receipt to the C. Steinweg Group in the Waigaoqiao Bonded Area of the China (Shanghai) Pilot Free Trade Zone – located in East China's Shanghai city.

A wide view of the C. Steinweg Group warehouse in the Waigaoqiao Bonded Area. [Photo/WeChat account: gh_01c6f7b4cf3d]

It marked the successful implementation of the dual contract model for international and domestic copper in the Waigaoqiao Bonded Area. 

In the transaction, the client canceled the international copper warehouse receipt and converted the goods to a bonded spot price contract. It then made an import declaration at the Waigaoqiao Bonded Area, where the goods passed through a special supervision system. Finally, a standard copper warehouse receipt for the Shanghai Futures Exchange was created. 

The entire process was completed within two working days, which greatly reduced the logistics and time costs. 

As a result, under the dual contract model, international and domestic copper can be trading in the same warehouse in four markets: domestic futures, international futures, domestic spot prices and international spot prices. 

C. Steinweg group is a provider of logistical services for the commodities trade, such as metals and soft commodities.

Its warehouse in the Waigaoqiao Bonded Area was approved as a delivery warehouse for international copper of the Shanghai International Energy Exchange in November last year. 

It was then designated as a delivery warehouse for Shanghai copper of the Shanghai Futures Exchange in May.