Shanghai unveils 18 measures to enhance the grade and global pricing influence of bulk commodities in the non-ferrous metal sector.

On January 20th, Shanghai released the "Action Plan for Strengthening the Linkage between the Futures and Spot Markets to Enhance the Resource Allocation Ability and Global Pricing Influence of Bulk Commodities in the Non-ferrous Metal Industry," aiming to strengthen the linkage between markets, improve the resource allocation ability and global pricing influence of bulk commodities in the non-ferrous metal industry in Shanghai, and support the construction of Shanghai's "Five Centers." According to the Shanghai Municipal Committee's Financial Office, the "Action Plan" mainly includes three parts with 18 measures. It promotes mutual access in the non-ferrous metal market, promotes the development of futures, spot, and derivatives markets, and supports Shanghai Clearing House and Shanghai Futures Exchange in exploring communication and exchanges in clearing and risk management. It also supports local non-ferrous metal spot trading venues to conduct fund settlement through bulk commodity clearing platforms to improve the efficiency and security of spot market settlement. The plan also encourages various types of non-ferrous metal application enterprises such as automobile production, construction, and household appliance manufacturing to participate in futures and OTC derivatives markets to better manage price risks. The "Action Plan" focuses on market participants, from infrastructure to physical enterprises, to strengthen the linkage between futures, spot, and derivatives markets, and enhance the level of service of bulk commodities in the non-ferrous metal industry for the real economy.