Alumina futures launch soon Listed aluminum companies disclose hedging plans
2023/6/15
(Xinjiang Zhonghe), an A-share listed company, announced on June 13 that in order to reduce the impact of alumina price fluctuations on the company's production and operation costs, the company intends to carry out alumina hedging business, trading instruments mainly include alumina futures, options and their combinations.
It is understood that Xinjiang Zhonghe is mainly engaged in the research and development, production and sales of new aluminum electronic materials and aluminum and alloy products, and its main products include high-purity aluminum, electronic aluminum foil, electrode foil, aluminum products and alloy products. Alumina is the main raw material required for the company's production, and its price fluctuation will cause certain pressure on the company's production cost.
Xinjiang Zhonghe said that alumina futures will be listed for trading in the near future, and the company intends to carry out alumina hedging business to reduce the fluctuation of product cost caused by the fluctuation of raw material price through the hedging mechanism, so as to achieve the purpose of locking the corresponding operating profit.
From the perspective of hedging scale, the quantity of hedging transactions to be carried out by Xinjiang Zhonghe is based on the spot quantity of alumina required for production, which is expected to not exceed 360,000 tons, and in principle, the quantity of hedging position will not exceed the spot quantity required for production. In the next 12 months, the maximum amount of margin occupied will not exceed 130 million yuan, and the maximum contract value of alumina hedging will not exceed 1.1 billion yuan.
According to the reporter's understanding, alumina futures listing trading is imminent, a number of alumina, electrolytic aluminum-related enterprises expressed full of expectations, will actively participate in order to better manage price risk.
Everbright futures non-ferrous research director exhibition Dapeng told reporters, China's alumina industry long-term overcapacity, trade long-order ratio of up to 90%, the spot market price there are significant regional differences, the lack of a national unified market, it is difficult to form an effective and fair pricing system. The listing of alumina futures will help provide a stable reference price for the market, alleviate the large fluctuations in the spot market in the short term, form a unified national price system, promote a more complete price system, and ensure market fairness and transparency.
"Alumina prices because of its own logic, and downstream electrolytic aluminum price correlation is not strong, therefore, at home and abroad, although there has been electrolytic aluminum as the subject of aluminum futures, but can not fully meet the aluminum industry chain upstream and downstream enterprises hedging and other risk management needs. Alumina enterprises cannot use aluminum futures to hedge the risk of alumina price fluctuations, and electrolytic aluminum enterprises cannot effectively hedge the risk of cost fluctuations in their alumina procurement." Sun Kuangwen, director of non-ferrous metals research and development at the New Lake Futures Institute, said that alumina futures will provide more complete risk management tools for aluminum industry chain enterprises after listing.
Zhan Dapeng believes that, in general, the listing of alumina futures will be conducive to the industry chain-related enterprises to establish the correct hedging concept and help enterprises optimize their production and operation mode. Through the price discovery function of the futures market, the formation of linkage between alumina and electrolytic aluminum market will help the relevant enterprises lock in costs and profits in advance, guide the upstream and downstream rational arrangements for production and operation, and help the industry to regulate development.
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