Metal Commodity Trading, World Wars

China has introduced more metal trading products in the market, such as gold exchange swaps that increase with the opening of foreign investment in the Shanghai Free Trade Zone, and steel exchange transactions on the Dalian Commodity Exchange. Other countries also followed, including the Singapore Steel Exchange (SGX) steel contracts, the Chicago Mercantile Exchange (CME) aluminum contracts and so on. All these new products, in addition to increasing the value of customers' assets, also exacerbate the global exchange competition.

As the transaction transparency increases, the metal market may be approaching a turning point. According to a recent survey conducted by the London Bullion Market Association (LBMA), the rapid growth of London Metal Exchange (LME) Eastbound Hong Kong, Dalian iron ore sand** transactions, and the CME launch of aluminum trading with LME competition have all revealed that the market is facing a major change. The same has been true of the stock market over the past 20 years. The concept of transparency, 24-hour electronic trading platform, and open and fair trading are increasingly popular.

After Indonesia’s election of the new government took office in early July, it will determine the future of local tin and nickel export bans. The ban was originally intended to encourage miners to build smelters there, but it has become the main reason for the higher metal prices this year.

The course of China’s economic development changed during the Third Plenary Session of the 18th Session, but the possible impact on the metal market has not been fully reflected. ****We pledge to suppress pollution and consolidate the financial system, which may have a major impact on the demand for all metals, as most of the metal's demand comes from the construction boom.

Chinese metal traders generally trade high-rate compensation from the Chinese financial system with low-cost Western funds through interest rate arbitrage trading contracts.

The question is what kind of metal used in the contract and its trading volume has not yet been disclosed to the outside world. Some traders have said that such transactions involve up to one million metric tons of copper, but other metals such as aluminum, iron ore, gold, etc. are also widely used in such contracts.