The Shanghai Free Trade Zone is officially launched for the international bulk commodity spot market

On July 31, the launching ceremony of the bulk commodity spot market in the Shanghai Free Trade Zone was officially held in the Yangshan Bonded Port Area.
 
On the same day, the Shanghai Nonferrous Metals Trading Center and the Shanghai Steel Union Metals and Minerals International Trading Center jointly launched the first batch of products online, and the third-party clearing and third-party warehouse receipt publicity systems were simultaneously launched.
 
This marks the official start of operation of the international commodity spot market in the Shanghai Free Trade Zone.
 
According to reports, the free trade zone bulk commodity spot market launched this time has two characteristics:
 
One is the characteristics of internationalization. It relies on the cross-border resource allocation characteristics of bonded areas to connect domestic and overseas, and coordinate onshore and offshore resources. The overall design follows international rules and is committed to building a bulk commodity trading platform in which international and domestic traders participate. It is specifically manifested in the internationalization of the transaction target, that is, the transaction target is a bonded physical object, and the warehouse receipt, bill of lading and other cargo rights certificates as the target; the internationalization of transaction participants includes both domestic and international traders; transaction prices Internationalization, "net price" transactions, RMB-denominated settlement.
 
The second is the "three-in-one" system innovation feature. In order to ensure that risks are controllable, the Shanghai Free Trade Zone Administrative Committee and relevant departments jointly formulated the "Shanghai Free Trade Zone Bulk Commodity Spot Market Transaction Management Rules (for Trial Implementation)" and the "Shanghai Free Trade Zone Bulk Commodity Spot Market Transaction Management Regulations". Establish relevant systems through normative documents. At present, four separate institutional arrangements of "transaction, custody, clearing, and warehousing" have been explored and established.
 
Today, the first two markets completed preparations went live in accordance with the new rules and systems, and domestic traders and overseas traders realized the same transaction. Through the Shanghai Nonferrous Metals Trading Center, Shanghai Jiangtong International Logistics Co., Ltd. successfully completed the purchase of 202 tons of bonded electrolytic copper from overseas sellers ARCRESOURCESCOMPANYLIMITED, with a transaction amount of more than 6.5 million yuan; Shanghai Diteng International Trade Co., Ltd., a wholly-owned subsidiary of Jizhong Hongyuan Sales of 54 tons of bonded electrolytic copper to Zhanxin (Hong Kong) Co., Ltd., with a transaction value of 1.7 million yuan. The first batch of trading products of Shanghai Steel Union Metals and Minerals International Trading Center, cold-rolled plate, rebar, and bar are officially launched. At present, the Shanghai Nonferrous Metals Trading Center has opened 76 accounts and has opened account dealers in the first batch, of which 24 are overseas members.
 
In synchronization with the trading market, the Shanghai Clearing House has launched a clearing system based on the Free Trade Account (FT) system for spot transactions of bulk commodities in the region. The third-party warehouse receipt announcement organization Free Trade Dazong (Shanghai) Information Service Co., Ltd., jointly established by Baosteel’s Ouyeel Finance, Free Trade Union Development, CITIC Securities’ subsidiary CITIC Huanqiu Trading, and China Merchants International Warehousing Co., Ltd., was formally established and its operations The third-party warehouse receipt announcement platform of the company went online.



Source: The Paper