Tianjin Precious Metals Exchange's plan to start spot copper trading from March 17 would probably boost trade in the metal in northern China, industry observers said Thursday. There could be some movement in trading from eastern and southern China to the north as a result of this, they added.
"The copper market in northern China is not a mature one and TPME starting spot trading should help the market develop more quickly," a copper trader in southwestern China said.
It might facilitate procurement of raw materials in the northern cities such as Beijing, Tianjin and even Shanghai, a Hong Kong-based trader said.
He Xiaohui, a copper analyst with Chinese metals consultancy Beijing Antaike, said that this could result in some business in the Shanghai Futures Exchange, Shanghai Changjiang Nonferrous Metals Market, and Guangdong Nanhai Nonferrous Metals Market moving to northern China.
"However, the trade re-distribution will not be immediate, and will take some time," he added.
Meanwhile, industry experts said the debut of TPME's spot copper trading should help balance the inadequacies of the old exchanges.
"SHFE, for example, runs just three sessions a day, while TPME plans to work 24 hours, making trading more convenient and flexible for traders," a trader from southeastern China said.
The Hong Kong-based trader agreed, adding: "TPME's 24-hour operation can bring it closer to the London Metal Exchange as LME starts trading during China's night time."