Chinese regulator gives nod for alumina futures on Shanghai exchange

China’s Securities Regulatory Commission has approved the registration of alumina futures on the Shanghai Futures Exchange (SHFE), it said on Friday.

The decision opens the door for the exchange to launch the world’s first alumina contract with physical delivery.

“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,” the SHFE said in a notice.

It did not specify when the contract will start trading.

China is the world’s top producer and consumer of alumina, which is used to produce aluminium, a metal widely consumed in the construction, transportation and packing sectors.

Accounting for more than half of global production, China produced 81.86 million tonnes of alumina last year, worth about 200 billion yuan ($28.93 billion), according to the SHFE.

Spot prices for alumina in northern China were assessed by Shanghai Metals Market at 2,835 yuan a tonne on Thursday.
Source: Reuters (Reporting by Siyi Liu and Dominique Patton Editing by David Goodman)