Shanghai exchange removes LME brands from delivery

SHANGHAI, May 20 - The Shanghai Futures Exchange, China's sole base metal bourse, will remove registered brands of the London Metal Exchange, which runs the world's benchmarks, from its list of base metal products qualified for delivery. The China Securities Regulatory Commission has allowed the Shanghai exchange to accept copper, aluminium and zinc with its own registration for delivery, the watchdog said in a statement dated May 18 on its website, www.csrc.gov.cn, on Wednesday. Analysts said the change, which showed the Shanghai exchange's desire to be a benchmark for pricing, would have a limited impact on trading as the exchange had already registered most of the popular brands. "I think the move will not hinder arbitrage between Shanghai and London, but will show that Shanghai is trying to shake off LME's influence and reinforce its industry position," said Xiao Jing, an analyst at Capital Futures. The Shanghai Futures Exchange has already registered products from major metal producers including Chilean state copper giant Codelco, the world's No.1 producer, and Freeport-McMoRan Copper & Gold Inc . Expectations of a revival in China's economy and purchases by its state reserve have lifted metals prices this year. Shanghai's three-month copper price is up 53 percent this year, compared with a 49 percent gain in its London counterpart .