Good trade on initial launch of China’s zinc futures market
Zinc futures trade got off to a strong start Monday at the Shanghai Futures Exchange, an effort Chinese regulators hope will enhance China’s influence on international zinc prices.
Author: Dorothy Kosich
Posted: Tuesday , 27 Mar 2007
RENO, NV -
Zinc futures began trading Monday on the Shanghai Futures Exchange with a total of 83,930 tons traded.
Shanghai Vice Mayor Feng Guoqin said the launch of the trading is significant and will promote the international competitiveness of the Shanghai Futures Market, as well as raise the profile of the city as an international finance hub.
During the opening ceremony Monday Shang Fulin, Chairman of the China Securities Regulatory Commission said the launch of zinc futures trade in China "helps increase China's influence on zinc prices in global markets and enhance related industries' capability to avoid risks caused by changing world prices," according to China Daily.
The newspaper also reported that metal for July delivery opened at 28,600 yuan (US$3,695) per ton and closed at 29,220 yuan (US$3,772) per ton..
Wang Gongmin, Vice Chairman of the China Non-ferrous Metals Industry Association, told China Daily that "the scarcity of a mechanism to settle the price of zinc in China had forced industry participants to passively follow the international markets, rendering it incapable of properly reflecting the supply and demand for the metal."
"The trading in zinc futures will generate far-reaching influence in the non-ferrous and futures markets as domestic enterprises are offered an effective platform to hedge against risks brought about by fluctuating prices," Wang added.
Although China is the world's foremost zinc producer and consumer, zinc futures and options have only been traded on the London Metals Exchange. |
