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UPDATE 2-Shanghai exchange sets delivery fee, names warehouses for bonded copper contract

    * INE sets delivery fee at 2 yuan/tonne but waives it until
Jan. 8
    * Names five bonded warehouses with 175,000 T approved
capacity
    * C. Steinweg, CMST among approved Shanghai storage
operators

 (Adds table, detail on current bonded copper stocks in para 9)
    Nov 9 (Reuters) - The Shanghai International Energy Exchange
(INE) said on Monday it would waive the delivery fee for its
upcoming bonded copper futures contract for the first seven
weeks of trading and named five warehouses that can take
delivery of the metal. 
    The long-awaited contract, which will be open to
international investors, giving them the chance to hedge their
exposure in the world's biggest copper market, will launch on
Nov. 19. 
    The fee for delivery has been set at 2 yuan ($0.30) per
tonne, the INE said in a circular, adding that the fee was
"tentatively waived from the listing day to January 8, 2021."
    Storage fees under the contract have been set at 0.5
yuan/tonne per day for indoor storage and 0.4 yuan/tonne per day
for outdoor storage, according to the circular.
    There is also a normal load-in fee of 18 yuan/tonne, which
rises to 30 yuan/tonnes for containers, a load-out fee of 15
yuan/tonne, or 25 yuan/tonne for containers, and an ownership
transfer fee of 1 yuan/tonne.
    In a subsequent statement, the INE named five logistics
businesses as designated bonded delivery warehouses for copper
cathodes under the contract, all of which are in Shanghai, with
total approved storage capacity of 175,000 tonnes. 
    Two of the warehouses are under C. Steinweg, a
Rotterdam-based firm which has warehouses approved by the London
Metal Exchange.
    The INE will "adjust the delivery capacity as appropriate to
market conditions and steadily expand the coverage of delivery
warehouses, temporarily without setting premiums or discounts,"
the bourse said. 
    Bonded copper inventories in China SMM-CUR-BON are
currently at 366,500 tonnes, the highest since August 2019.
The following table shows INE-designated copper warehouses and
their approved capacities in tonnes.    
 Warehouse                            Approved capacity
 Shanghai CMST Lingang Logistics Co        30,000
 Shanghai SIPG Bonded Warehousing          60,000
 Management Co                        
 Shanghai Yangshan Free Trade Port         40,000
 C. Steinweg Logistics Co             
 C. Steinweg Logistics (Shanghai           40,000
 Waigaoqiao Bonded Logistics Zone)    
 COSCO Shipping Logistic Co                 5,000
 Total                                     175,000
 Source: INE
        
($1 = 6.5654 Chinese yuan)

 (Reporting by Tom Daly and Min Zhang; Editing by Jacqueline
Wong and Louise Heavens)
  
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