Shanghai Futures Exchange launches 4 more metal options

China has achieved a milestone in its derivatives market with the introduction of lead, nickel, tin, and alumina options on the Shanghai Futures Exchange on Monday. This development represents the more complete coverage of options in the nonferrous metal sector in China, offering a more comprehensive risk management tool for industries within this sector.

At nine o'clock in the morning, lead, nickel, tin, and aluminum oxide options, involving 314 contracts, simultaneously launched trading. For these four major metals, domestic consumption and production volumes rank among the world's top.

Shortly after the opening bell, the first aluminum oxide options transaction was completed in a trading room 10 kilometers away. This seat subsequently bought dozens of lots to hedge inventory for enterprises. Compared to the futures products launched last year, options, with their larger contract volume and complex design, can provide more precise price control.

The active trading of the four metal options is driven by strong demand in the real economy. For instance, tin, known in the industry as the "computing metal," is widely used in the manufacturing of semiconductors and photovoltaic panels. Especially with the rise of artificial intelligence, Shanghai tin futures recorded a trading volume exceeding 4.1 trillion yuan in the first half of this year.

At the close of Monday, the total trading volume of the four metals on the first day exceeded 27 million yuan, with aluminum oxide having the highest trading volume of over 14 million yuan. Currently, the number of commodity option products in China has reached 49, covering industries such as metals, agricultural products, energy, and chemicals.

In recent years, with the complex international situation, commodity prices have fluctuated significantly. Options can help enterprises more scientifically improve operational efficiency and innovate business models. At the same time, the variety of option products can enhance the international competitiveness of China's futures market.