A lack of order and regulatory oversight is preventing China’s commodity future exchanges from exerting a greater influence over the way prices are set for copper, iron ore and other raw materials, according to a senior government official.

“[China] is faced with an extremely rare opportunity to become the global price-setting centre for commodities,” said Fang Xinghai, vice-chairman of the China Securities Regulatory Commission yesterday. “If we want to become a global price-setting centre for commodities, we must have appropriately effective oversight?.?.?.?[and] establish reasonable order for market transactions,” he told the Shanghai Future Exchange’s annual conference.

China is the world’s biggest consumer of raw materials, accounting for half or more of annual demand for some commodities. But it has much less influence over the way prices are set. That still depends on the mood on western exchanges such as the London Metal Exchange and Comex in New York.