Zinc to debut on China's futures exchange next Monday
22/3/2007 16:21
The China Securities Regulatory Commission yesterday announced its
approval for the trading of zinc futures on the Shanghai Futures Exchange from
March 26.
Zinc is the first new futures product to be introduced to the
country's futures market this year.
The new move is meant to provide Chinese
zinc enterprises with a hedging instrument and reduce their heavy reliance on
international markets.
China is the world's largest zinc producer and
consumer and is responsible for one fifth of the world's total zinc ore
production, but has long been denied a say in the pricing process for the metal.
The London Metal Exchange is currently the only current exchange in the world to
have a zinc futures market.
Last year the zinc futures price surged more than
120 percent on the international markets.
According to the Shanghai Futures
Exchange, the minimum delivery unit is set at 25 tons and the price will be
allowed to rise or fall within a daily limit of four percent of the closing
price for the previous day's trading.
Xinhua
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