China is stepping up efforts to strengthen its influence in the pricing of global non-ferrous metals, rolling out measures to deepen market activity and tightening links between futures, spot and derivatives trading.
Authorities in Shanghai, the mainland’s financial hub, on Tuesday rolled out an action plan aimed at strengthening the links between the futures, spot and derivatives markets for non-ferrous metals. It is part of a broader ambition to enhance Shanghai’s role in global commodity pricing.
The 18-point action plan included measures to deepen the collaboration between exchanges and clearing institutions, enhance risk management instruments, expand international participation and cultivate a more integrated market ecosystem, state-owned media outlet The Paper reported.
“Shanghai is a major hub for commodities, particularly non-ferrous metals,” said Tiger Shi, CEO of Bands Financial, a veteran of China’s non-ferrous metals sector. “It is one of the most important locations for non-ferrous metals’ consumption and trade globally, given its role in serving manufacturing bases across eastern China.”
He added that China’s non-ferrous metals industry accounted for a significant share of global output, yet its pricing influence had not kept pace.
“These measures are expected to advance market opening and also strengthen China’s influence in the international non-ferrous metals commodities market.”
China is the largest non-ferrous metals producer in the world, as well as the largest consumer of copper, aluminium, zinc, lead, nickel and tin. Output of 10 non-ferrous metals totalled 7.21 million tonnes in December, a 4.9 per cent increase from a year earlier, according to the latest official data.
Currently, 11 non-ferrous metals futures contracts and 10 options, including copper, aluminium, zinc and lead, were listed on the Shanghai Futures Exchange, according to a bourse official.
Some of these contracts already had global or regional pricing power, the official said at a media briefing on the action plan.
The non-ferrous metals futures suite, led by “Shanghai copper”, had become one of China’s most mature commodity futures platforms, joining the ranks of the world’s top three non-ferrous metals pricing centres, the official added.
The move came against a favourable backdrop for non-ferrous metals.
The demand for non-ferrous metals in China was expected to stay resilient this year, underpinned by investments linked to energy transition and rapid expansion of artificial intelligence infrastructure, despite headwinds from the real estate and industrial sectors, according to a report from S&P Global Ratings this month.
S&P expects copper to average about US$10,500 per metric tonne, up from US$9,950 in 2025, reflecting a combination of steady demand growth and persistent supply constraints.
The global rating firm also predicted that gold would average around US$3,300 an ounce this year compared with US$3,459 last year, well above long-term historical levels, as spot prices were expected to ease from recent peaks.
Gold hit another high of US$4,891.30 on Wednesday. — SOUTH CHINA MORNING POST
