Shanghai Halts Duty-Free Metal Deliveries

The Shanghai Futures Exchange has paused the use of duty-free warehouses for settling copper and aluminum futures contracts. This move affects traders who previously used the system to avoid taxes on metals sold overseas. The bonded stockpiles, introduced in 2010, allowed traders to sell metal to international markets without immediate tax obligations. By suspending this mechanism, the exchange is likely aiming to curb tax evasion and align with stricter regulatory oversight. Analysts suggest the decision may signal a shift toward more transparent trading practices.