Shanghai Sets 2030 Targets for Commodity Trading Hub and ‘Shanghai Price’ System

Shanghai outlined a five-year plan to build an international trade center that places commodity resource allocation at its core, aiming to develop an international commodity trading center, pricing center, risk management center and supply-chain hub, according to Jiemian News. The plan says the number of commodity trading groups with annual revenue above 100 billion yuan should rise from 11 in 2025 to about 15 by 2030, while cumulative goods trade in the 2026-2030 period should exceed $3 trillion and offshore trade should top $500 billion. At a Sept. 3 press briefing, Shanghai vice secretary-general Zhu Min said the city’s annual spot commodity trading volume exceeds 8 trillion yuan, it hosts 15 financial infrastructure markets covering futures, spot and clearing, has launched 25 futures contracts and 20 options contracts, and has 14 commodity trading service platforms with annual turnover above 10 billion yuan. Shanghai plans to strengthen pricing, transshipment and risk-management functions around iron ore, copper, LNG, power, computing power and hydrogen-based new energy, while expanding direct access for more futures and options contracts to overseas traders and accelerating internationally traded yuan-denominated products. The city also plans to deepen links between futures, spot and derivatives markets, expand the scope of pledged bonded warehouse receipts, strengthen standard warehouse receipt financing, and increase over-the-counter commodity derivatives supply. To address warehouse receipt verification, duplicate pledges and cross-border traceability issues, Shanghai will build a trusted trade ecosystem under the “Xinmao Chain” initiative, using blockchain to connect trading, warehousing, logistics, funding and customs data. Shanghai oil, copper and rubber contracts already have a presence in Asia-Pacific markets, with Shanghai crude oil futures ranking as the world’s third-largest crude oil futures market and Shanghai copper among the world’s top three copper pricing centers.