en.Wedoany.com Reported - On June 10, 2026, the cast aluminum alloy futures and options contracts launched by the Shanghai Futures Exchange (SHFE) celebrated their first anniversary. As China's first recycled commodity futures trading product, these contracts achieved a cumulative trading volume of 2.2747 million lots (approximately 22.7469 million tons) over the past year, with a turnover of 502.730 billion yuan. A total of 76,680 tons were delivered across seven cycles, and options accumulated a trading volume of 425,400 lots. The correlation between futures and spot prices reached as high as 0.99, with market functions gradually becoming apparent.
The futures and options of cast aluminum alloy are closely linked to spot prices, with basis remaining within a reasonable range. Contracts exhibit a structure of lower near-term and higher long-term prices, reflecting market expectations of supply and demand changes. The average daily open interest stands at approximately 19,500 lots, equivalent to a spot scale of about 200,000 tons, accounting for 50% of China's monthly consumption of cast aluminum alloy. Industry participation is gradually increasing, with spot enterprises beginning to adopt models such as basis inquiry and basis trade, while information agencies also reference futures prices for quotations.
A sales manager from a leading cast aluminum alloy production company stated that the enterprise uses this tool for hedging, spot-futures trade, and price-locking operations. During the aluminum price rise from late 2025 to early 2026, the company locked in inventory value through short hedging and successfully completed multiple futures deliveries to digest off-season inventory. Liu Long, Deputy Secretary-General of the Recycled Metals Branch of the China Nonferrous Metals Industry Association, pointed out that this product has effectively enhanced pricing transparency in the spot market, driving the industry's transformation toward standardization and green development.
Cast aluminum alloy is the primary pathway for recycling scrap aluminum. According to data from the China Nonferrous Metals Industry Association, producing one ton of cast aluminum alloy generates carbon emissions approximately 3.6% of those from electrolytic aluminum (coal-fired), saving 3.4 tons of standard coal and 22 tons of water. The SHFE has recently organized five sessions of risk management training to help enterprises in the aluminum industry chain improve their practical application of futures and options tools.
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