Shanghai's Putuo district is solidifying its role as a hub for bulk commodity trading, with a rich history dating back to the 1990s.

The Shanghai Metal Exchange, China's first pilot futures exchange, was launched in Putuo then, marking the beginning of market-based trading in the country's bulk commodities.

In 2013, the Shanghai non-ferrous metals trading center was established in the Material Trading Building, accounting for more than 60 percent of Shanghai's spot trading volume in non-ferrous metals.

As the only standalone building dedicated to non-ferrous metals trading at that time, it featured integrated professional services, including trading, warehousing, logistics, and finance.

More than 400 non-ferrous metals trading companies have established operations in the building, with full supply chain coverage stretching from upstream raw material procurement to downstream logistics and distribution, and from futures hedging to banking and financial services.

Centered on the Material Trading Building, a bulk commodity trading headquarters cluster was mapped out along the Suzhou Creek waterfront, while the logistics park infrastructure in the northwestern area was reinforced.

Shanghai's only industrial internet service platform cluster led by non-ferrous metals was established in Putuo in 2023. By 2024, the cluster had boosted the district's large-scale commercial sales to 1.6 trillion yuan ($220 billion).

The Shanghai non-ferrous metals spot price index was released by the Shanghai non-ferrous metals trading center, covering copper, aluminum, lead, zinc, tin, and nickel. The sampling standards are strictly aligned with futures delivery grades, becoming important reference for enterprises engaged in international trade.

The trading center is actively driving digital transformation by developing its "Huorongtong" platform and exploring blockchain technology applications.

Source: Shanghai Observer