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Investment bankingDecember 13 2010

As commodities demand moves to Asia, will banks follow?

The statistics are clear: commodity demand is moving east, and fast. For the moment, the bulk of trading and price-setting is done out of New York and London, but will banks, exchanges and physical trading houses move east as well? Joanne Hart reports
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As commodities demand moves to Asia, will banks follow? Eastern promise: the Shanghai Futures Exchange is posing a threat to the traditional exchange powerhouses in Europe and the US

In 1999, Asia accounted for 38% of global copper demand. Today, the figure is 62%. In 1999, China consumed 4.5 million barrels of oil per day. Ten years later, that had increased to 8.6 million barrels per day.

On the London Metal Exchange (LME), 25% of trades in its highly popular three-month zinc contract now take place between 1am and 7am, an Asian time-slot that only became available four years ago.

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