The capital market welcomes new members! Today, the first recycled commodity variety in my country's futures market – cast aluminum alloy futures and options, is listed and traded on the Shanghai Futures Exchange. After listing at 9 a.m., all seven contracts in the first batch rose. As of today's closing, the total unilateral trading volume reached 57,300 lots, with a transaction amount exceeding 11 billion yuan.
Ma Wensheng, president of the Shanghai Futures Association and chairman of Xinhu Futures, revealed to reporters that the original intention of launching cast aluminum alloy futures products is to improve the risk resistance of the industrial chain. Judging from today's trading volume, the transaction is very active, which means that the product has a market foundation.
Cast aluminum alloy is an aluminum alloy that uses scrap aluminum as the main raw material. After melting with copper, silicon, etc., through the casting process, it generates blanks or parts, which has a significant energy-saving and emission reduction effect.
Wang Jiwei, deputy secretary-general of the China Nonferrous Metals Industry Association, said that my country is a major producer and consumer of recycled aluminum. The production of recycled aluminum exceeds 10 million tons in 2024 and is expected to reach more than 18 million tons by 2030. Judging from the trend of Shanghai Aluminum, a variety related to cast aluminum alloys, this year, the industry's prices fluctuated greatly. The launch of cast aluminum alloy futures products will have a great impact on related companies.
The annual output of an aluminum alloy manufacturer located in Kingsoft in Shanghai is about 120,000 tons. However, when encountering busy farming, long holidays or large price fluctuations, the company is very troubled because the main raw materials for smelting aluminum alloys are scrap cans, scrapped cars, etc. Therefore, it is easy for companies to encounter a shortage of raw material inventory. Now that there are new futures products, companies have more means to deal with market fluctuations.
The president of the aluminum alloy production company told reporters that futures can hedge when prices fluctuate significantly. In addition, safe inventory can be supplemented when purchasing is restricted.
In addition to futures, cast aluminum alloy options will be listed for trading at 9:00 tonight at night. Xu Man, senior manager of the Commodity Department of the Shanghai Futures Exchange, introduced that the launch of cast aluminum alloy futures and options can create a standardized, efficient and transparent price for the market. In addition, the term structure can also well reflect the market supply and demand relationship and expected changes, which can provide guiding roles in the production and operation of enterprises, and at the same time provide enterprises with more risk management tools to increase the business resilience of enterprises.
Since the beginning of this year, the global environment has been complex and changeable, and the frequency of enterprises and institutions using futures has increased significantly. In the first five months of this year, the cumulative transaction amount of 23 futures products of the Shanghai Futures Exchange exceeded 110 trillion yuan, a year-on-year increase of nearly 26%. Cast aluminum alloy futures and options will form a synergistic effect with the existing alumina, electrolytic aluminum futures and options in the Shanghai Futures Exchange, and increase the China price influence of the aluminum industry.
Check out the news reporter: Ma Jie and Lu Jun
Editor: Zhou Ti
Editor: Zhang Yunkun