China’s industrial and metals markets play a central role in global supply chains. The Shanghai Futures Exchange (SHFE) is one of China’s core commodity exchanges, providing benchmark futures and options contracts across base metals, precious metals, and energy-related products.
Through Orient Futures Singapore, global investors can access SHFE contracts efficiently and compliantly as part of a broader China market strategy.
What Is SHFE?
Established in 1999, the Shanghai Futures Exchange (SHFE) is a leading Chinese derivatives exchange specialising in industrial metals and strategic commodities closely tied to China’s manufacturing economy.
SHFE plays a critical role in domestic price discovery for commodities where China is the world’s largest producer or consumer.
Key characteristics of SHFE include:
- RMB-denominated futures and options contracts
- Physically delivered core industrial products
- Deep integration with China’s manufacturing supply chain
- Regulated participation framework for domestic and qualified foreign investors
- Increasing international relevance in global metals pricing
As China’s industrial sector influences global commodity flows, SHFE benchmarks have gained growing importance among international traders.
SHFE Products You Can Trade
SHFE focuses primarily on base metals, precious metals, and industrial materials central to infrastructure and manufacturing.
| Access Types | Futures | Options |
|---|---|---|
| Qualified Foreign Investor (QFI) | Copper | Copper Option |
| Aluminum | Aluminum Option | |
| Zinc | Zinc Option | |
| Gold | Gold Option | |
| Silver | Silver Option | |
| Steel Rebar | Steel Rebar Option | |
| Hot-rolled Coil | - | |
| Stainless Steel | - | |
| Fuel Oil | Fuel Oil Option | |
| Woodpulp | Woodpulp Option | |
| Natural Rubber | Natural Rubber Option | |
| Lead | Lead Option | |
| Tin | Tin Option | |
| Bitumen | Bitumen Option |
These contracts are widely used for hedging physical exposure, managing import margins, price discovery, and relative value strategies linked to global benchmarks.
Discover our comprehensive China Market Access overview to gain insight into the regulatory frameworks, participation pathways, and market connectivity available to global investors.
Who Trades SHFE?
SHFE participants include:
- Metal producers and smelters
- Fabricators and manufacturers
- Infrastructure and construction firms
- Commodity trading houses
- Hedge funds and proprietary trading desks
- Institutional investors seeking China-related metals exposure
For global participants, SHFE provides direct insight into China’s domestic metals demand, often a leading indicator for global commodity cycles.
How Foreign Investors Access SHFE
Foreign participation in SHFE is facilitated through regulated frameworks, including approved futures brokers and recognised international participation schemes.
With Orient Futures Singapore, global investors benefit from:
- Licensed and regulated access pathway
- Professional onboarding and compliance support
- Institutional-grade trading connectivity
- Clearing access via approved structures
- Integration within a broader China and global markets strategy
This structure allows foreign institutions to participate in China’s onshore metals markets without establishing a mainland entity.
Why SHFE Matters in a Global Trading Strategy
SHFE contracts complement global benchmarks such as LME and COMEX by:
- Reflecting China-specific supply and demand dynamics
- Providing early signals of industrial demand shifts
- Offering Asia-session liquidity and arbitrage opportunities
- Enhancing hedging precision for Asia-focused exposure
Given China’s scale in global metals consumption and production, SHFE pricing is increasingly relevant to international commodity strategies.
Access SHFE with Orient Futures Singapore
Orient Futures Singapore provides institutional-grade access to SHFE as part of a comprehensive China market offering, supporting clients from onboarding through execution and beyond.
Contact us to explore how SHFE fits into your China market strategy.
