INE Bonded Copper Futures (BC), listed on the Shanghai International Energy Exchange (INE), provides institutional market participants with RMB-denominated exposure to copper held in China’s bonded warehouses. The contract supports price discovery, risk management and trading opportunities across China’s copper and broader metals markets.
As one of the world’s largest copper-consuming markets, China plays an important role in global copper demand and trade. INE Bonded Copper Futures provide a China-based pricing reference for copper before it enters the domestic market, offering an alternative to China’s duty-paid domestic copper contract.
For international institutions, BC provides a way to gain exposure to China’s copper pricing in RMB without requiring an onshore trading licence for domestic futures. The contract can be used alongside SHFE copper and international copper benchmarks as part of broader metals trading and risk management strategies.
Eligible overseas institutional investors can participate in BC through China’s Internationalised Contracts or the Qualified Foreign Investor (QFI) framework. These access channels allow eligible foreign institutions to trade selected Chinese futures and options while gaining exposure to China’s domestic price discovery and growing commodity markets.
If you are new to China’s derivatives market, we recommend starting with our China Market Access Guide before exploring the available access routes through the Internationalised Route and the Qualified Foreign Investor (QFI) Scheme.
What Does "Bonded" Mean for This Contract?
“Bonded” means the copper is stored in a customs-supervised zone before it is cleared into China’s domestic market. Import duty and value-added tax (VAT) have not yet been applied while the copper remains in bonded storage.
This gives BC a different price basis from SHFE’s domestic copper contract, which reflects copper for onshore delivery. BC therefore provides a pricing reference for copper at the bonded stage of the supply chain.
For market participants involved in international copper trade, bonded storage can provide greater flexibility when managing the timing of imports, domestic sales, storage and re-export.
Where Can BC Futures Be Delivered?
BC Futures are physically settled, with deliverable copper required to meet Grade A cathode standards.
Delivery is available at designated bonded warehouses in Shanghai and Guangzhou:
Shanghai’s Yangshan Special Comprehensive Bonded Zone
- Henry Bath Warehousing: 30,000-ton capacity
- Shanghai Xinyi Logistics: 10,000-ton capacity
Guangzhou
- Guangdong Jushen Storage: 10,000-ton capacity
The Yangshan copper premium is also widely followed as an indicator of conditions in China’s bonded copper market, providing insight into regional copper supply, demand and pricing.
Why Trade INE Bonded Copper?
INE Bonded Copper Futures provide institutional participants with a China-based futures market for managing exposure to copper prices and the broader metals supply chain.
Market participants may use INE BC Futures to:
- Hedge exposure to copper price volatility across the metals supply chain
- Manage copper procurement and trading risks
- Gain exposure to China’s copper market
- Diversify metals trading strategies across Asian and global markets
- Monitor regional copper pricing and market conditions
INE BC Futures may be relevant to:
- Commodity trading firms
- Copper importers, traders and smelters
- Metals producers and manufacturers
- Bonded warehouse and logistics operators
- Hedge funds
- Proprietary trading firms
- Institutional investors
Institutions seeking exposure to China’s domestic, duty-paid copper market may also be interested in INE Futures & Options Trading, which includes China’s onshore copper contract alongside aluminium, zinc, lead, tin, gold and silver.
INE Bonded Copper Contract Specifications
The Shanghai International Energy Exchange (INE) lists Bonded Copper under the contract symbol BC. The contract represents refined copper cathode held in bonded storage and is physically settled.
| Specification | INE Bonded Copper Futures | INE Bonded Copper Options |
|---|---|---|
| Listing Exchange | Shanghai International Energy Exchange (INE) | |
| Contract Symbol | BC |
Call option: BC-Contract Month-C-Strike Price Put option: BC-Contract Month-P-Strike Price |
| Underlying | Refined copper (Grade A cathode), held in bonded storage | INE Bonded Copper (BC) Futures Contract (5 metric tons) |
| Contract Size | 5 metric tons (MT)/lot | 1 BC contract |
| Price Quotation | Yuan (RMB) /MT (exclusive of tax and customs duty) | (RMB) Yuan/ton |
| Minimum Tick Size | 10 Yuan/metric ton | 2 Yuan/ton |
| Daily Price Limit | Within ±3% of the settlement price of the preceding trading day | Same as underlying INE Bonded Copper Futures |
| Delivery Months | January-December | Nearest two consecutive months; later months may be listed when the underlying BC futures open interest reaches the threshold specified by INE |
| Trading Hours | 9:00–11:30 a.m., 1:30–3:00 p.m., and other exchange-prescribed sessions | |
| Last Trading Day | The fifteenth day of the delivery month, subject to exchange adjustments | The fifth-to-last trading day of the month preceding the delivery month of the underlying BC contract, subject to exchange adjustments |
| Settlement | Physical delivery | Exercise into the underlying contract |
| Delivery Period | Five consecutive trading days after the last trading day | N/A |
| Access | Internationalised and Qualified Foreign Investor (QFI) | |
The above summarises the principal contract specifications. Please refer to the Shanghai International Energy Exchange for the latest contract rules and trading parameters.
How Overseas Investors Can Access INE Bonded Copper
Eligible overseas participants can access INE Bonded Copper Futures through two recognised market access routes.
Internationalised Contracts
BC is an internationalised product, allowing eligible overseas participants to trade through an approved Overseas Intermediary (OI), such as Orient Futures Singapore, without establishing an onshore Chinese entity.
The Internationalised Route provides overseas institutions with access to selected Chinese commodity derivatives while participating in China’s domestic price discovery.
Learn more:
Qualified Foreign Investor (QFI)
The Qualified Foreign Investor (QFI) framework provides eligible institutional investors with broader access to China’s domestic futures and options markets, including products listed across SHFE, INE, DCE, ZCE, GFEX and CFFEX.
For institutions evaluating which access route is most suitable, our guides provide further information on eligibility, product coverage and market access considerations.
Learn more:
Why Trade Through Orient Futures Singapore?
As a MAS-regulated brokerage and an approved Overseas Intermediary for INE, Orient Futures Singapore provides institutional clients with access to China’s bonded and onshore derivatives markets, supported by institutional-grade execution, low-latency infrastructure and cross-border market expertise.
Our capabilities include:
- Access to INE internationalised products, including Bonded Copper Futures& Options
- Qualified Foreign Investor (QFI) market access support
- Institutional account onboarding
- Multi-exchange connectivity
- Professional execution services
- Low-latency trading infrastructure
- Access to global markets alongside China’s futures exchanges
Ready to Access INE Bonded Copper?
Whether you are hedging copper exposure, managing procurement and trading risks, or building a broader China metals strategy, our team can help you understand the available market access routes for your institution.
Speak with our institutional sales team today to learn more.
Frequently Asked Questions
Q: Is INE Bonded Copper Futures the same as SHFE copper futures?
Q: What quality standard applies to deliverable copper under BC?
Q: Can overseas institutions access INE Bonded Copper?
Q: Does bonded storage mean that copper avoids Chinese tax permanently?
No. Bonded storage does not permanently exempt copper from Chinese import taxes. Instead, it generally allows applicable import duty and VAT to be deferred while the copper remains in a bonded area. If the copper is subsequently cleared into China’s domestic market, the applicable taxes and duties may become payable.
For INE Bonded Copper (BC), this bonded arrangement is important because the contract is designed around the trading and delivery of copper within China’s bonded market, with prices quoted exclusive of VAT and customs duty.
Q: What other Chinese exchanges can overseas investors access?
Depending on the access route and eligibility, overseas institutions may also access products listed on SHFE, INE, DCE, ZCE, GFEX and CFFEX.
Explore our China Market Access page to learn more about China’s futures exchanges, available products and market access routes.
About the Author
Chong Yung Lik
Business Development Manager
Orient Futures Singapore
LinkedIn
Chong Yung Lik is a business development manager at Orient Futures Singapore, working across the full client lifecycle for institutions seeking access to China and global futures markets. As part of the Orient Futures Singapore sales team, he supports overseas clients through account opening, margin and settlement procedures, and ongoing relationship management across China and global futures and derivatives products. His articles draw on direct, team-grounded experience with the operational realities of accessing China and international markets.
