02 SEPTEMBER 2011Bloomberg
Shanghai to Expand Storage for Aluminum, to Boost Trade-Hub Status
Edited by : AL CIRCLE
1 min read
Shanghai will increase storage for metals at bonded warehouses as much as fivefold, lowering costs for commodity trading and potentially boosting shipments.
“As we expand our physical and futures-related trading businesses, it’s likely to become a globally influential price- forming center for certain commodities when trading volumes become large enough," said Wang Xinling, vice chairman of the Shanghai Free Trade Zones Administration.
Increased bonded warehousing space in Shanghai, the world’s busiest container port, may help China’s metals trading hub bring prices more in line with international rates as shipments are exempt from import duties. Demand from the world’s second- largest economy has helped fuel a rally in metal prices since 2003, with increased trading in Asia prompting the London Metal Exchange, where benchmark prices are settled, to offer futures products in Singapore.
“As we expand our physical and futures-related trading businesses, it’s likely to become a globally influential price- forming center for certain commodities when trading volumes become large enough," said Wang Xinling, vice chairman of the Shanghai Free Trade Zones Administration.
Increased bonded warehousing space in Shanghai, the world’s busiest container port, may help China’s metals trading hub bring prices more in line with international rates as shipments are exempt from import duties. Demand from the world’s second- largest economy has helped fuel a rally in metal prices since 2003, with increased trading in Asia prompting the London Metal Exchange, where benchmark prices are settled, to offer futures products in Singapore.
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