Shanghai exchange plans alumina futures draft driven by commodity derivatives

Views:2619 Author:Site Editor Publish Time:2018-09-28 09:04:57 Orgin:Site

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September 20 the Shanghai Futures Exchange (SFE) aims to release a draft alumina futures contract by the end of 2018 or early 2019, after market demands for price benchmarks for raw materials used to make aluminum, an official said Thursday.

"We believe that by the end of this year or early next year, we will publish a draft for public discussion," said Zhang Zhiyong, head of the nonferrous metals department of SHFE, at the aluminum and raw materials conference in AZ China. Shanghai.

In recent years, China's major commodity exchanges have been eager to launch futures contracts for a range of products - from date to electricity - that shift to investment risk appetite and provide the country's huge industrial sector with ways to protect revenue.

On Friday, Shanghai Futures Exchange will launch copper options and is considering opening its flagship copper futures to foreign investors, an important step in the country's efforts to develop the derivatives industry.

SHFE has offered aluminum futures, and China is the world's largest producer and consumer of automotive and aircraft metals.

The Chinese alumina contract will compete with the products of CME Group, a US competitor, allowing alumina refineries and smelters to better protect the risk of price fluctuations.

"My colleagues are studying it because there have been some fluctuations in alumina (prices) over the past few years, so we have some market demands for new futures," Zhang said.

As a result of the shutdown of the alunorte refinery in Brazil's Norsk Hydro, the sanctions imposed by the United States on Rusal in Russia and the strike on Alcoa's business in Western Australia, the price of alumina on free ships in Australia has risen nearly 50% so far this year.

In China, alumina prices have soared as Beijing's crackdown on heavy industry has shut down some refineries and strained supplies.

Zhang said that in 2013, Shanghai Futures Exchange began to focus on alumina futures, and this year began to test alumina inventory.

He said it would take "a long time" to sign a contract in China.

The exchange is also focusing on aluminum alloy futures, but not in the short term, while stainless steel futures may be launched in the next one to two years