New policy makes bulk commodity transactions easier in Shanghai
A total of 28,300 tons of copper has recently been transported to the C. Steinweg warehouse in the Waigaoqiao Port Comprehensive Bonded Area in the China (Shanghai) Pilot Free Trade Zone. It was the largest amount of bulk commodities that the bonded area has received since its establishment on April 15, 2021.
According to the innovative policies in the bonded area, companies involved in the copper industry chain can freely conduct transactions and deliver domestic and international futures as well as spot markets in a single warehouse either in a bonded or dutiable way, instead of transporting the commodities to a designated market warehouse.
C. Steinweg Logistics is among a slew of companies joining Shanghai FTZ's Global Operation Program. The initiative helps enterprises upscale their businesses in the zone by offering expanded functions and better connect with global resources, thus elevating the position of these China-based entities within their own global apparatus, according to local authorities.
C. Steinweg has benefited greatly from the GOP and grown from a transaction warehouse for the international bonded spot copper market into a major copper business leader that holds more than 50 percent of Shanghai's market share in terms of both futures and spot commodity storage volumes.
The attempt of a free switch among the four markets in a single warehouse is part of Pudong's efforts to address its responsibility as assigned by the central authorities. According to the guideline released by the Communist Party of China Central Committee and the State Council on July 15, 2021, Pudong is set to pioneer the country's socialist modernization and establish a higher level of reform and opening-up. Among the many steps to achieve that goal, more efforts should be made in Pudong to better help companies utilize the onshore and offshore markets.
More importantly, the move will help China, the world's largest copper consumer, acquire more international pricing power in bulk commodity trading, local authorities said.