Shanghai Futures Exchange is moving forward with the launch of a tin contract and has already delivered the application to China Securities Regulatory Commission, Mr. Ye Chunhe, Vice General Manager announced at ITRI China’s Annual Tin Reception in Sanya, Hainan in 20th November. Subject to approval by CSRC, trading should begin early in 2015.

SHFE has started the work of brand registration and market training. China is the world’s largest tin producer and consumer, and the tin future contract will provide a better hedging method for domestic enterprises and also improve price transparency. The tin contract lot size will be smaller than other base metals in SHFE, at 1 tonne. The delivery standard should be in compliance with Sn 99.90 A grade specifications of national standard GB/T 728-2010, wherein the tin content is no less than 99.9%. The contract could be trading continuously over 24 hours once it is launched.

The Chinese tin industry widely supports the listing of a tin future contract. The vice general manager from Yunnan Tin Group said recognition of the quality and service of China smelters would be improved by registering their brands on SHFE. Other companies expressed strong interest in futures trading and thought it will stimulate investment demand for tin in China.

Shanghai Futures Exchange has 12 futures contracts available for trading, including copper, aluminum, lead and zinc, steel rebar and silver. SHFE also launched a continuous trading programme for gold and non-ferrous metals futures from 2012, and now has an important position in global metals trading, especially for copper.