Source: CCTV.com

03-27-2007 09:56

Zinc futures contract jumped 3 percent in active trade on its trading debut in Shanghai on Monday. The most-active July contract ended at over 29 thousand yuan a ton.

This means, it is at a 700 yuan premium to three-month zinc futures on the London Metal Exchange. Over 21 thousand contracts were traded, exceeding the volume on the exchange's aluminum futures on Monday, but falling well short of the exchange's popular copper futures. Once a major exporter of zinc, China now consumes most of its zinc amid a booming economy.

It imports large amounts of concentrate - the raw material - raising smelters' need to hedge. Zinc futures will help China raise its capacity to influence the international zinc price, and it will also enable Chinese firms to avoid risks brought by price fluctuations.

 

Editor:Li Yang