Hong Kong Exchanges and Clearing Ltd. plans to launch copper, aluminum, zinc and coal futures contracts this year, Reuters reported, the exchange’s first foray into the fiercely competitive, burgeoning Chinese commodities derivatives market.
The company said it will introduce mini futures for the three base metals based on settlement prices of the futures on the London Metal Exchange (LME) owned by HKEx and settled in cash with Chinese renminbi. They will trade in 5-ton lots, rather than the 25 tons on LME futures.
The price of Chinese copper wire rose 1.2 percent on Monday, April 21, making it the day’s biggest mover. After three days of flat prices, it closed at CNY 48,160 ($7,731) per metric ton. Chinese copper bar saw its price rise 0.7 percent to CNY 49,100 ($7,882) per metric ton. The cash price of Chinese copper gained 0.7 percent to finish at CNY 49,300 ($7,914) per metric ton. For the fifth consecutive day, the price of Chinese bright copper scrap held flat at CNY 44,300 ($7,111) per metric ton.
After a 0.9 percent increase, the cash price of primary Japanese copper finished the day at JPY 711,000 ($6,932) per metric ton. The price of US copper producer grade 122 inched up 0.8 percent to $3.76 per pound. At $3.76, the price of US copper producer grade 110 finished the market day up 0.8 percent per pound. The price of US copper producer grade 102 gained 0.8 percent to finish at $3.95 per pound.
The copper 3-month price remained essentially flat on the LME at $6,632 per metric ton. Also on the LME, the cash price of primary copper remained essentially flat at $6,631 per metric ton.