China is all set to roll out a new copper futures contract this week that will be open to foreign traders, in an attempt to boost yuan adoption and wrest some pricing power away from the established industry benchmark in London (LME).
The addition of copper, the world's most-traded base metal, to a growing suite of international commodity futures will increase China's appeal to the global trading community.
The yuan-denominated products launched serve two strategic ends: they give global market participants another reason to use the yuan while also boosting China's pricing power in key commodities markets.
The copper contract starts trade on Thursday on the Shanghai International Energy Exchange (INE).