SHFE Copper Cathode

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SHFE copper cathode futures trade on the Shanghai Futures Exchange (SHFE). They have been trading since 1991, making it one of the oldest futures contracts in China, along with SHFE aluminum futures.

Each SHFE copper cathode futures contract represents 5 tons of deliverable grade copper cathode, which is defined as standard copper cathode (GB/T467-1997) with fineness not less than 99.95 percent or two substitutions 1)high grade copper (GB/T467-1997) and 2) LME registered brand BS EN 1978:1998 as good delivery, and its delivery date is set as the 16th to 20th day of the spot month[1].

Each SHFE copper cathode futures contract is subject to a margin rate equivalent to 5 percent of contract value (e.g., 15577.5 yuan = 62310 yuan [CU0808 last price on May 23, 2008] x 5 [tons/contract] x 5 percent) as well as a trading fee equal or below 0.02 percent of transaction value / contract.

In 2008, SHFE copper cathode futures traded 41,546,516 contracts (+27.22 percent YOY) and its turnover amounted to 9,964.1 billion yuan (-1.78 percent YOY).

SHFE Monthly Volume by Product.JPG


SHFE Copper Cathode futures
Exchange Shanghai Futures Exchange
Settlement Physically delivered
Contract Size 5 ton/lot
Pricing Unit 5 yuan (RMB)
Tick Value 10 yuan (RMB)
Contract Months January to December
Last Trading Day The 15th day of the spot month
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A 9:00 am to 11:30 am, 1:30 pm to 3:00 pm
Ticker Symbol N/A CU
Price Limits N/A Within range of 4% above or below the settlement price of the previous trading day

References

  1. Copper Cathode Contract Specifications. Shanghai Futures Exchange.