The China Securities Regulatory Commission recently agreed to the registration of cast aluminum alloy futures and options on the Shanghai Futures Exchange (hereinafter referred to as the “Shanghai Futures Exchange”), marking that the first recycled metal variety in my country's futures market is about to be listed. The China Securities Regulatory Commission requires the Shanghai Futures Exchange to make all preparations to ensure the smooth operation and healthy development of cast aluminum alloy futures and options.
my country is the world's largest producer and consumer of cast aluminum alloys. According to statistics from the China Nonferrous Metals Industry Association, in 2024, my country's cast aluminum alloy (regeneration) production capacity will be about 13 million tons, with an output of about 6.2 million tons; the apparent consumption will be about 6.73 million tons. Cast aluminum alloy has low density, high strength, good corrosion resistance and excellent casting process, and is widely used in automobiles, motorcycles, mechanical equipment, communication equipment, electronic appliances, hardware and lamps and other fields.
Cast aluminum alloy is an aluminum alloy that uses scrap aluminum as the main raw material, and after melting with copper, silicon, etc., and then generates blanks or parts through the casting process. Casted aluminum alloys are the main way to recycling scrap aluminum, and the energy saving and emission reduction effect is significant. According to data from the China Nonferrous Metals Industry Association, the carbon emissions of one ton of cast aluminum alloy are about 3.6% of electrolytic aluminum (thermal power), which can save 3.4 tons of standard coal and 22 tons of water. Cast aluminum alloy has regeneration green properties and is an important product for the low-carbon transformation of the aluminum industry. The “Government Work Report” at the Third Session of the 14th National People's Congress pointed out that it is necessary to accelerate the comprehensive green transformation of economic and social development, accelerate the development of a green and low-carbon economy, strengthen waste recycling, vigorously promote the use of recycled materials, and promote the development of a circular economy. At the same time, the “Implementation Plan for High-Quality Development of the Aluminum Industry (2025-2027)” issued by the Ministry of Industry and Information Technology and ten other departments pointed out that it is necessary to build a green aluminum industry development system, significantly improve the aluminum resource guarantee capacity, and the production of recycled aluminum must reach more than 15 million tons. We must continue to cultivate scrap aluminum processing and utilization enterprises that meet standardized conditions and have strong competitiveness, and promote the integrated development and high-value utilization of recycled aluminum, primary aluminum and aluminum processing. The launch of cast aluminum alloy futures and options is a powerful measure to do a good job in “green finance” in the “five major articles” of finance. It will help promote the green and low-carbon development of my country's aluminum industry, further improve the market and standards for scrap aluminum recycling, and help build a green, low-carbon circular economy system. Green development is an important feature of new industrialization and an important manifestation of the new development concept. Green and low-carbon are the ecological background color of new industrialization. The introduction of cast aluminum alloy futures and options is also a specific measure for the futures market to help new industrialization.
my country is a world's largest aluminum industry country and has built a complete industrial chain of “bauxite-alumina-electrolytic aluminum-aluminum processing-aluminum application-recycled aluminum”. In recent years, my country's aluminum industry chain has developed rapidly, especially the booming development of the new energy vehicle industry, which has driven the increase in demand for cast aluminum alloys, and the demand for price risk management of industrial chain enterprises is becoming increasingly strong. The launch of cast aluminum alloy futures and options can form synergistic effects with the existing alumina, electrolytic aluminum futures and options in the Shanghai Futures Exchange, providing more comprehensive risk management services for enterprises in my country's aluminum industry chain.
In the next step, under the unified deployment of the China Securities Regulatory Commission, the Shanghai Futures Exchange will continue to strengthen supervision and prevent risks, promote the stable operation and high-quality development of the futures market, help maintain the security of the industrial chain and supply chain, and better serve the high-quality development of the real economy.
(Reprinted from: China Nonferrous Metals Industry Network)