Trading on CME's new Shanghai copper premium futures contract has paused after an encouraging debut because market participants have been too busy with aluminium amid US duties and sanctions, sources said.
But the contract, which was launched in November 2017 and is settled against the monthly average of Metal Bulletin's daily assessments, is still closely monitored for liquidity growth and seen as a useful hedging tool against increased volatility in the Shanghai copper market. "We are keeping an eye on the contract and remain optimistic about it," a futures trader said. "There is appetite to have it and use it. But many have had their hands too full with aluminium to allocate resources to this new and less liquid product." The aluminium market has been very hectic and volatile in the past two months with US President Donald Trump first imposing a 10% duty on imports from a number of countries before announcing sanctions on April 6...