On Friday, June 2, the Shanghai Futures Exchange (SHFE) announced receiving alumina futures trading permission from Beijing after the Securities Regulatory Commission approved the plan. That makes the SHFE the first exchange on Earth to offer an alumina contract with physical delivery.
Noting several benefits of listing alumina futures, SHFE said in a press statement: “The listing of alumina futures will enhance the competitiveness for China’s alumina industry and its price influence and also improve companies’ risk-management abilities.”
However, the Shanghai exchange has not yet revealed the date of starting to accept alumina futures listings.
The People’s Republic of China accounts for more than half of the world’s total alumina output. In 2022, China churned out 81.86 million tonnes of alumina, valued at US$28.93 billion.
At present, the SHFE trades future contracts in copper, aluminium, zinc, natural rubber, fuel, oil, and gold. It is the largest metals exchange in China and the third largest on Earth.
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