How are the deliverables for bonded copper futures managed? Commodity registration is required for the deliverables of bonded copper futures. The rules for commodity registration will be separately released by the INE. 38. Where are the delivery storage facilities for bonded copper futures located?
For the location of delivery storage facilities, INE preferentially selects areas that are close to consumption and distribution hubs. For this reason, INE selects delivery storage facilities for bonded copper from the most qualifying Chinese and foreign-funded facilities in the Shanghai Free-Trade Zone. In the future, the location of delivery storage facilities will be optimized based on contract and market needs.
What are the contract size and delivery unit of bonded copper futures?
The contract size of bonded copper futures is 5 metric tons per lot and the delivery unit is 25 metric tons. Delivery should be made in integral multiple(s) of the delivery unit.
What quality specifications should the deliverables of bonded copper futures meet?
The deliverables of international copper futures should meet the specifications for Grade-A (Cu-CATH-1) set out in GB/T 467-2010 or CR001A (Cu-CATH-1) in BS EN 1978:1998.
Tolerance and pound difference for each standard warrant should not exceed ±2% and ±0.1% respectively. Copper cathodes underlying each standard warrant must be: (1) of the same manufacturer, grade, registered brand, quality grade, and shape, and secured into bundles of similar weight; and (2) of an INE-registered brand or SHFE-registered brand recognized by INE, accompanied by quality certificates. Standard warrants are issued after the commodities pass the inspection of the Designated Delivery Storage Facilities of INE.