SHFE Aluminum
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SHFE aluminum futures trade on the Shanghai Futures Exchange (SHFE). The contract has been trading since 1991, making it one of the oldest futures contracts in China, along with SHFE copper cathode futures.
Each SHFE aluminum futures contract represents five tons of deliverable grade aluminum ingot, which is defined as standard aluminum (GB/T1196-93) with fineness not less than 99.70 percent with a substitution being LME registered brand P1020A as good for delivery, and its delivery date is set as the 16th to 20th day of the spot month[1].
Each SHFE aluminum futures contract is subject to a margin rate equivalent to 5 percent of contract value (e.g., 4757.5 yuan = 19030 yuan [AL0808 last price on May 23, 2008] x 5 [tons/contract] x 5 percent) as well as a trading fee equal or below 0.02 percent of transaction value/contract.
In 2007, SHFE aluminum futures traded 9,647,104 contracts (-65.38 percent year over year) and its turnover amounted to 937.8 billion yuan (-67.06 percent year over year), making it the least active (in terms of volume) and second smallest (in terms of turnover) futures contract on SHFE. SHFE aluminum futures was one of the four Chinese futures contracts that traded less in 2007 than in 2006 (both in terms of volume and turnover), and its turnover was only one-tenth of SHFE copper cathode futures' turnover.
SHFE aluminum futures trade rather inactively due to a combination of large domestic producers and small domestic consumers and the fact that China is a major aluminum producing country and therefore hedging pressure is always quite high. Currently, China is the world's top aluminum producing country[2] and major mines are located in Shanxi, Shandong, Henan, Guizhou, Guangxi, and Yunnan[3].
| Aluminum futures | ||
|---|---|---|
| Exchange | Shanghai Futures Exchange | |
| Settlement | Physically delivered | |
| Trade Unit | 5 ton/lot | |
| Point Value | 5 yuan (RMB) | |
| Tick Value | 10 yuan (RMB)/ton | |
| Contract Months | January to December | |
| Last Trading Day | The 15th day of the spot month | |
| Note: This contract is electronic ONLY -- no open outcry | ||
| No Open Outcry | No Electronic Market | |
| Trading Hours | N/A | 9:00 am to 11:30 am, 1:30 pm to 3:00 pm |
| Ticker Symbol | N/A | AL |
| Price Limits | N/A | Within range of 4% above or below the settlement price of the previous trading day |
References
- ↑ Aluminum Contract Specifications. Shanghai Futures Exchange. Retrieved on May 24, 2008.
- ↑ Shandong nickel producers may cut output. Mining Journal. Retrieved on June 25, 2008.
- ↑ Bauxite deposits in China. SpringerLink. Retrieved on June 26, 2008.
