Alumina futures with physical delivery starts trading in China

The physically delivered alumina futures is officially listed for trading on the Shanghai Futures Exchange on Monday, the first of its kind across the world.

Multinational natural resources company Glencore is the buyer involved in the first transaction of the main contract on the first day of alumina's listing, with China Aluminum International Trading Group Co Ltd serving as the seller of the deal.

Alumina is the main raw material of the aluminum industry, with the majority 95 percent used in electrolytic aluminum smelting and production, and the rest used for ceramics, chemicals and pharmaceuticals, among others.

China is the world's largest producer and consumer of alumina. In 2022, China's annual output of alumina came at 81.86 million tons, accounting for more than half of the world's total. According to the average price in 2022, China's alumina market value exceeded 200 billion yuan ($28 billion).

As explained by experts from Shanghai Futures Exchange, the prices of alumina have undergone frequent fluctuations in recent years mainly due to macroeconomic changes, industrial policies, changes in supply and demand, and unexpected issues. Companies' risk management demand in this regard has thus increased significantly.

The listing of alumina futures has further enriched the series of non-ferrous metal derivatives in China, forming a synergistic effect with aluminum futures and aluminum options. It can therefore help companies better manage risks to realize steady operation, said experts from Shanghai Futures Exchange.

shijing@chinadaily.com.cn