The Shanghai Futures Exchange will Promote the Listing of Tungsten And Rare Earth

The Shanghai Futures Exchange will Promote the Listing of tungsten And Rare Earth

Song Liping, Chairman of the Board of Supervisors of the Shanghai Futures Exchange, stated at the 18th Shanghai Derivatives Market Forum that in the next step, the Shanghai Futures Exchange will continue to supply serial products and advance the research and development of alumina, tungsten, magnesium, aluminum alloy, cobalt, rare earth and other varieties in an orderly manner. The listing work, with the on-market derivatives market as the core, promotes the establishment of an integrated derivatives market system.

Tungsten is an irreplaceable and non-renewable strategic metal resource in the national economy and modern defense. It has the physical characteristics of high melting point, high specific gravity, and high hardness. It is widely used in aerospace, atomic energy, shipbuilding, automotive industry, electrical industry, electronics industry and chemical industry. However, the financial properties of tungsten are relatively low compared to other bulk commodities, and tungsten is not included in the current metal futures varieties.

Song Liping introduced that after years of development, the scale of all ferrous metal futures markets in the previous period has steadily increased, the market liquidity is relatively abundant, and the hedging function is effectively exerted. Futures prices have become an important reference for domestic and foreign spot trade pricing, which has further promoted the non-ferrous metals industry structural adjustment, transformation and upgrading.

Since the beginning of this year, the international environment has been complicated. The recovery of global quantitative easing and the misalignment of supply and demand caused by the epidemic has exacerbated the volatility of commodity prices, and business operations are facing impact. Starting from the maintenance of the safety and stability of the industrial chain and supply chain, the Shanghai Futures Exchange strengthens market supervision, regulates transaction behavior, adheres to bottom-line thinking, and strives to ensure the orderly development of hedging transactions of entities.

She pointed out that in the process of achieving the 30/60 target of "carbon peak and carbon neutrality", it is necessary to locate and proactively stand to give full play to the service function of the futures market. In the next step, the Shanghai Futures Exchange will implement the decisions and deployments of the Party Central Committee and the State Council, improve political positions, adhere to the overall situation, and work together to promote the stable operation of the futures market, improve quality and efficiency, and strive to build a structure that matches the level of development of the real economy and meets the needs of risk management. A multi-level non-ferrous metal derivatives market system that is adaptable and has strong international competitiveness.

The first is to optimize the rule system, starting from improving the rule system and warehouse layout, innovating transaction instructions, etc., to consolidate the construction of infrastructure and system in a multi-dimensional and all-round way, and effectively maintain the openness, fairness and justice of the market. The second is the continuous supply of serial products. Promote the R&D and listing of alumina, tungsten, magnesium, aluminum alloy, cobalt, rare earth and other products in an orderly manner, with the on-site derivatives market as the core, and promote the establishment of an integrated and integrated derivatives market system. The third is to adhere to the direction of internationalization, study the new internationalization model of non-ferrous metal futures varieties, and promote high-quality development with high-level opening.

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