Improve The Risk Management Tools, Alumina Futures Listed At The Right Time
At the beginning of 2020, a worldwide COVID-19 epidemic caused a huge impact on the aluminum industry chain, among which the prices of alumina, electrolytic aluminum and other products fluctuated sharply, seriously affecting the smooth operation of aluminum-related enterprises.During the epidemic, an increasing number of aluminum companies have an urgent need for risk management tools. At present, the Shanghai Futures Exchange has listed aluminum futures and options, which have played an important role in avoiding price risks for aluminum enterprises in the context of the epidemic. Aftermarket alumina futures once listed, will further improve the risk management tools and strategies of aluminum enterprises, promote the healthy and steady development of the aluminum industry.
Aluminum futures on the Shanghai Futures Exchange were first listed in 1992. After nearly 30 years of development, it has become an important risk management tool for China's nonferrous metal industry due to its large market size, good contract liquidity and reasonable investor structure.
The latest data show that in 2020, the annual turnover of aluminum futures is 52.86 million hands (unilateral calculation, the same below), a year-on-year growth of 61.38%;The turnover was 3.72 trillion yuan, up 63.58% year on year; The average daily trading volume was 217,600 lots, up 62.05% year on year. From the perspective of position holding, since 2013, the proportion of the position held by legal persons in aluminum futures has been basically maintained at 65-80%. In domestic commodity futures, legal persons have a higher degree of participation in the market, and their function of price discovery and hedging is also better. During the epidemic, many real enterprises were faced with problems such as high inventory, difficult sales, poor operation of industrial chain, and tight raw materials and cash flow. Some enterprises achieved good results by using futures tools for risk management.
