Get ready for an upcoming COPPER explosion China makes first...

Get ready for an upcoming COPPER explosion

China makes first step towards taking control of world copper market
By
Robin Bromby
-
November 20, 2020
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China has rolled out a new copper futures contract in a push to boost yuan adoption and take pricing power away from the London Metals Exchange.
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China has rolled out a yuan-denominated copper futures contract open to foreign traders — a move that is being seen as an attempt to prise open the London Metal Exchange’s (LME) domination of trading in the red metal.

It is also a clear signal that China is pushing ahead with plans for full internationalisation of the yuan.

The new futures contract began trading on Thursday (19 November).

Beijing wants to be a price-maker, not a price-taker, especially when it is largely dependent on imports for any commodity.

It should be assumed that its goal is eventually to have the yuan price dominating copper trading, not the greenback.