On June 10, China’s first futures and options contracts for recycled commodities debuted at the Shanghai Futures Exchange (SHFE), with cast aluminum alloy futures launching at 9:00 AM and options starting trading at 21:00 PM.
The initial cast aluminum alloy futures contracts—AD2511, AD2512, AD2601, AD2602, AD2603, AD2604, AD2605—were listed at a base price of 18,365 yuan/ton. Trading remained stable on debut, with 57,300 lots (single-side) traded worth 11.011 billion yuan, and an open interest of 11,500 lots. The active AD2511 contract closed at 19,190 yuan/ton, up 4.49%.
Industry Leaders Hail Transformative Impact
Ge Honglin, Secretary of the Communist Party Committee and President of the China Nonferrous Metals Industry Association, called the launch a “milestone for China’s recycled metal industry,” highlighting its role in enhancing global influence, building risk management systems, and advancing high-quality development of recycled aluminum. The Association will guide enterprises to leverage futures tools for risk control.
Tian Xiangyang, Secretary of the SHFE Party Committee and Chairman, noted the launch as a landmark for green finance supporting new productive forces. With over 30 years of aluminum futures trading and subsequent launches of aluminum options, alumina futures/options since 2020, the new contracts will further drive industrial standards and transformation through financial-industrial integration.
Market Players Embrace New Risk Management Tools
Nine major enterprises including Lizhong Siton Light Alloy Group and Chongqing Shunbo Aluminum actively participated in Day One trading. Wu Shaomin, Assistant General Manager of Shanghai Jingsheng Metal Materials, praised the contracts for addressing previous hedging inefficiencies: “They provide precise risk tools, revolutionize pricing mechanisms, and reduce regional price disparities by promoting basis trading.”
Futures institutions also see expanded service roles. Ma Wensheng, President of Shanghai Futures Industry Association and Chairman of Xinhua Futures, emphasized the ability to design customized over-the-counter products based on standardized contracts, while risk management subsidiaries can facilitate enterprise participation through spot and basis trading.
As China’s first recycled metal derivatives, the cast aluminum alloy contracts signal a new era for green financial instruments, aligning commodity markets with circular economy goals and industrial upgrading.
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