China Wants a Made-in-China Copper Price
The country’s latest international futures contract has timing and structure on its side.
The world’s biggest copper consumer wants more sway over prices.
Photographer: Kevin Lee/Bloomberg
China’s next move to open up its commodities markets may be a step change.
As of Thursday, overseas investors will be able to trade copper futures on the Shanghai International Energy Exchange. It’s not the first such product: A yuan-denominated crude oil contract, launched in March 2018, has been modestly successful. A subsequent push to let foreigners trade iron ore in Dalian established a global benchmark. Copper could outshine these efforts, thanks to fortuitous timing, global appetite for an economic bellwether and the sheer clout of the world’s largest consumer.