On June 10, China’s first futures product for recycled commodities—cast aluminum alloy futures and options—were listed and commenced trading on the Shanghai Futures Exchange (SHFE). The listing ceremony was witnessed by representatives from CSRC-affiliated institutions, relevant industry associations in Shanghai, upstream and downstream enterprises in the cast aluminum alloy industrial chain, SHFE member units, delivery warehouses, quality inspection agencies, market institutions, and news media.
Cast aluminum alloy is a type of aluminum alloy primarily made from scrap aluminum as the raw material, which is then smelted with elements such as copper and silicon and formed into blanks or parts through casting processes. The carbon emissions from producing one ton of cast aluminum alloy are approximately 3.6% of those from producing electrolytic aluminum, saving about 3.4 tons of standard coal and 22 tons of water. Currently, cast aluminum alloy serves as the main channel for scrap aluminum recycling, representing a crucial product for the low-carbon transition of the global aluminum industry. It falls within the resource recycling industry and the remanufacturing industry, both of which are strongly promoted for development in China.
In 2024, China’s production capacity for cast aluminum alloy was approximately 13 million tons, with an output of about 6.2 million tons, making it the world’s largest producer and consumer of cast aluminum alloy. In recent years, the aluminum industry chain has experienced rapid development, particularly driven by sectors such as new energy vehicles, which have increased the demand for cast aluminum alloy. Consequently, there is a strong demand for price risk management among related enterprises.
The launch of cast aluminum alloy futures and options provides an effective tool for physical enterprises to manage price risks, supporting their stable operations. It also utilizes the price discovery function of the futures market to reflect market supply-demand dynamics and expectation changes in a timely and objective manner. By working in synergy with alumina futures and primary aluminum futures, it enhances the influence of the “China Price” in the aluminum industry.
Shanghai Eagle Metal Materials Co., Ltd., as a trading firm that participated in the inaugural day’s trading, was interviewed by media outlets including the Futures Daily.
Wu Shaomin, Assistant General Manager of Shanghai Eagle Metal Materials Co., Ltd., stated in an interview with Futures Daily that he was very pleased to see the launch of cast aluminum alloy futures and options. The listing of cast aluminum alloy futures has addressed the previously inadequate hedging effectiveness of aluminum futures for aluminum alloys. Together with alumina futures and SHFE aluminum futures, it now forms a comprehensive risk hedging system, facilitating trading companies in steadily developing their spot business operations and better serving upstream and downstream enterprise clients. Furthermore, using cast aluminum alloy futures as a price benchmark enables more diversified pricing and price risk management services, meeting the needs of different clients in various market environments. This provides precise risk management tools for enterprises in the aluminum industry chain, allowing the company to better control spot business risks and offer enhanced risk management services to clients going forward.
