Research on the Copper Futures Market in China

Research Article
Open access

Research on the Copper Futures Market in China

Wanqi Xi 1* , Chengrui Zhang 2
  • 1 Meadowridge School    
  • 2 Sichuan University    
  • *corresponding author nataliexiwq@gmail.com
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/30/20231486
AEMPS Vol.30
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-081-3
ISBN (Online): 978-1-83558-082-0

Abstract

This paper examines the role of copper futures in China's financial market, listed in the Shanghai Futures Exchange (SHFE) in 1991 as the first nonferrous metal futures commodity. Today, it is one of the well-developed and mature futures contracts in the Chinese commodity futures market. We analyze the current situation of the Chinese copper market, both spot and futures, along with the role of hedging with copper futures in the whole copper industry chain and the role of copper futures in the spot market. The results show that hedging with copper futures is significant for metal enterprises from all parts of the copper industry chain as an essential tool to offset price risks and for stable development; it also optimizes resource allocation in the economy and improves the efficiency of Chinese metal enterprises.

Keywords:

copper futures, copper spot, financial market

Xi,W.;Zhang,C. (2023). Research on the Copper Futures Market in China. Advances in Economics, Management and Political Sciences,30,270-278.
Export citation

References

[1]. Li, X. (2020, October 24). China Securities Regulatory Commission Approves International Copper Futures Trading. China Securities Regulatory Commission Approves International Copper Futures Trading_Department Government Affairs_China Government Network. Retrieved September 1, 2022, from http://www.gov.cn/xinwen/2020-10/24/content_5553845.htm

[2]. Raw Materials Industry Division. (2022, January 29). Operation of the copper industry in 2021. Ministry of Industry and Information Technology of the People's Republic of China. Retrieved September 1, 2022, from https://www.miit.gov.cn/gxsj/tjfx/yclgy/ys/art/2022/art_35aac0c0f0c147f49ced8c2b953e52c4.html#:~:text=2021%E5%B9%B4%EF%BC%8C%E6%88%91%E5%9B%BD%E9%93%9C %E8%A1%8C%E4%B8%9A, %E5%90%A8%EF%BC%8C%E5%90%8C%E6%AF%94%E4%B8%8B%E9%99%8D0.9% 25%E3%80%82

[3]. He, H., & Ma, P. (2020, October). Thinking on improving the stability of mining industry chain by metal investment and financing. China Mining Magazine. Retrieved September 2, 2022, from http://www.chinaminingmagazine.com/uploads/pdf/1632481408564.pdf

[4]. Nguyen, M. (2021, October 7). Copper analysts reset outlook on China's dual demand ructions. Reuters. Retrieved September 1, 2022, from https://www.reuters.com/article/copper-outlook-idUSKBN2GX0P9

[5]. Chow, E. (2022, January 14). China 2021 copper imports slip after previous year's record high. Reuters. Retrieved September 1, 2022, from https://www.reuters.com/markets/asia/china-2021-copper-imports-slip-after-previous-years- record-high-2022-01-14/

[6]. OpenMarkets. (2020, September 22). Importance of copper in China's economyOpenMarkets. CME Group. Retrieved September 1, 2022, from https://www.cmegroup.com/cn-s/education/articles-and-reports/the-importance-of-copper-in- chinas-economy.html

[7]. Dong, J. (2020, November 12). The practical significance of imports to the current Chinese economy. China World Trade Organization Research Association. Retrieved September 1, 2022, from http://www.cwto.org.cn/article/m/202011/20201103015151.shtml

[8]. Marian Radetzkl. (n.d.). Rural market imperfections and the role of ... - Wiley Online Library. Long-run Price Prospects for Aluminium and Copper. Retrieved September 2, 2022, from https://onlinelibrary.wiley.com/doi/abs/10.1111/j. 1477-8947.2008.00167.x

[9]. My Color: Copper Market 2020 Review and 2021 Outlook _ My Color. (n.d.). Www.mymetal.net. Retrieved September 2, 2022, from https://www.mymetal.net/20/1231/14/C3C6DA5B405FBA4A.html

[10]. Copper price rises as China's factory activity accelerates. MINING.COM. (2021, December 31). Retrieved September 2, 2022, from https://www.mining.com/copper-price-up-on-robust-china-demand/

[11]. "China Mining" magazine. "China Mining" magazine. (n.d.). Retrieved September 2, 2022, from http://www.chinaminingmagazine.com/

[12]. Copper futures prices in Shanghai rose 6% to the highest point in nearly a decade. NAI 500. (2021, February 22). Retrieved September 2, 2022, from https://nai500.com/blog/2021/02/copper-futures-prices-in-shanghai-rose-6-to-the-highest-point-in-nearly-a-decade/

[13]. Lovell, H., & Journal, T. H. F. (n.d.). Copper spot prices and stock market volatility. The Hedge Fund Journal. Retrieved September 9, 2022, from https://thehedgefundjournal.com/copper-spot-prices-and-stock-market-volatility/

[14]. Stone, H. (2021, February 22). Copper futures prices in Shanghai rose 6% to the highest point in nearly a decade. NAI 500. Retrieved September 9, 2022, from https://nai500.com/blog/2021/02/copper-futures-prices-in-shanghai-rose-6-to-the-highest-point-in-nearly-a-decade/

[15]. The "supply chain" troubles of a copper processing company, the price of raw material electrolytic copper and its transportation has skyrocketed: "I dare not import copper anymore." (2021, December 5). Finance.sina.com.cn. https://finance. sina.com.cn/wm/2021-12-05/doc-ikyakumx2120425.shtml

Cite this article

Xi,W.;Zhang,C. (2023). Research on the Copper Futures Market in China. Advances in Economics, Management and Political Sciences,30,270-278.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-081-3(Print) / 978-1-83558-082-0(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.30
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Li, X. (2020, October 24). China Securities Regulatory Commission Approves International Copper Futures Trading. China Securities Regulatory Commission Approves International Copper Futures Trading_Department Government Affairs_China Government Network. Retrieved September 1, 2022, from http://www.gov.cn/xinwen/2020-10/24/content_5553845.htm

[2]. Raw Materials Industry Division. (2022, January 29). Operation of the copper industry in 2021. Ministry of Industry and Information Technology of the People's Republic of China. Retrieved September 1, 2022, from https://www.miit.gov.cn/gxsj/tjfx/yclgy/ys/art/2022/art_35aac0c0f0c147f49ced8c2b953e52c4.html#:~:text=2021%E5%B9%B4%EF%BC%8C%E6%88%91%E5%9B%BD%E9%93%9C %E8%A1%8C%E4%B8%9A, %E5%90%A8%EF%BC%8C%E5%90%8C%E6%AF%94%E4%B8%8B%E9%99%8D0.9% 25%E3%80%82

[3]. He, H., & Ma, P. (2020, October). Thinking on improving the stability of mining industry chain by metal investment and financing. China Mining Magazine. Retrieved September 2, 2022, from http://www.chinaminingmagazine.com/uploads/pdf/1632481408564.pdf

[4]. Nguyen, M. (2021, October 7). Copper analysts reset outlook on China's dual demand ructions. Reuters. Retrieved September 1, 2022, from https://www.reuters.com/article/copper-outlook-idUSKBN2GX0P9

[5]. Chow, E. (2022, January 14). China 2021 copper imports slip after previous year's record high. Reuters. Retrieved September 1, 2022, from https://www.reuters.com/markets/asia/china-2021-copper-imports-slip-after-previous-years- record-high-2022-01-14/

[6]. OpenMarkets. (2020, September 22). Importance of copper in China's economyOpenMarkets. CME Group. Retrieved September 1, 2022, from https://www.cmegroup.com/cn-s/education/articles-and-reports/the-importance-of-copper-in- chinas-economy.html

[7]. Dong, J. (2020, November 12). The practical significance of imports to the current Chinese economy. China World Trade Organization Research Association. Retrieved September 1, 2022, from http://www.cwto.org.cn/article/m/202011/20201103015151.shtml

[8]. Marian Radetzkl. (n.d.). Rural market imperfections and the role of ... - Wiley Online Library. Long-run Price Prospects for Aluminium and Copper. Retrieved September 2, 2022, from https://onlinelibrary.wiley.com/doi/abs/10.1111/j. 1477-8947.2008.00167.x

[9]. My Color: Copper Market 2020 Review and 2021 Outlook _ My Color. (n.d.). Www.mymetal.net. Retrieved September 2, 2022, from https://www.mymetal.net/20/1231/14/C3C6DA5B405FBA4A.html

[10]. Copper price rises as China's factory activity accelerates. MINING.COM. (2021, December 31). Retrieved September 2, 2022, from https://www.mining.com/copper-price-up-on-robust-china-demand/

[11]. "China Mining" magazine. "China Mining" magazine. (n.d.). Retrieved September 2, 2022, from http://www.chinaminingmagazine.com/

[12]. Copper futures prices in Shanghai rose 6% to the highest point in nearly a decade. NAI 500. (2021, February 22). Retrieved September 2, 2022, from https://nai500.com/blog/2021/02/copper-futures-prices-in-shanghai-rose-6-to-the-highest-point-in-nearly-a-decade/

[13]. Lovell, H., & Journal, T. H. F. (n.d.). Copper spot prices and stock market volatility. The Hedge Fund Journal. Retrieved September 9, 2022, from https://thehedgefundjournal.com/copper-spot-prices-and-stock-market-volatility/

[14]. Stone, H. (2021, February 22). Copper futures prices in Shanghai rose 6% to the highest point in nearly a decade. NAI 500. Retrieved September 9, 2022, from https://nai500.com/blog/2021/02/copper-futures-prices-in-shanghai-rose-6-to-the-highest-point-in-nearly-a-decade/

[15]. The "supply chain" troubles of a copper processing company, the price of raw material electrolytic copper and its transportation has skyrocketed: "I dare not import copper anymore." (2021, December 5). Finance.sina.com.cn. https://finance. sina.com.cn/wm/2021-12-05/doc-ikyakumx2120425.shtml

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.