Futures Market Protects Aluminum Industry

After more than 10 years of development, the aluminum market in China is on the right track. The investment value and investment concept of aluminum are being accepted by domestic aluminum companies and investors. With the changes in the fundamentals of international and domestic non-ferrous market in 2004, the Shanghai aluminum futures transaction has also achieved rapid development. The daily volume, turnover, and open interest have hit a record high. In 2005, the Shanghai Futures Exchange focused on cultivating and developing the aluminum market. It focused on serving and obeying the overall situation of the national economy, taking market functions into play, increasing the development of the aluminum market, mobilizing and relying on The enthusiasm of the members and aluminum companies promotes the continuous improvement of the aluminum futures function and the further activity of the transaction. Specific measures include: 1. Actively promote the construction of a market system. The exchange must establish an effective, liquid market that allows more investors to participate, and provide a safe trading environment to manage the risks posed by price fluctuations. To this end, the Exchange will strengthen the construction of market infrastructure, improve the trading and delivery rules by providing more diversified trading methods, more flexible coupling methods and other measures, and promote the active trading of aluminum futures contracts to promote the efficiency of futures markets. We hope to become a nonferrous metal futures trading center with high technology, intensive radiation, high operating efficiency, and low transaction costs. 2. Further strengthen the service to aluminum enterprises, carry out regular visits and discussions, extensively listen to opinions and suggestions, strengthen exchanges and communication, increase mutual understanding and trust, and promptly study and resolve outstanding issues that reflect more concentration; To solve the problem, we must do a good job of explaining and diverting the work and create conditions to gradually solve it, and strive to create a harmonious market environment. 3. Actively carry out market-oriented propaganda and guidance work, promote the construction of market integrity, increase the level of market standardization and credibility, enhance Chinese aluminum companies' understanding of the international and domestic aluminum futures market, and help aluminum companies establish risk management using futures market hedging The concept of management provides companies with futures professionals. This year, the exchange plans to carry out four targeted training sessions, one of which is training for aluminum futures analysts to improve the skills of aluminum companies to participate in futures trading. 4. With the continuous deepening of China’s economic reform and opening up and the continuous relaxation of access to the domestic market after China's accession to the WTO, the interaction between the two markets and the two resources at home and abroad will become closer, and more and more foreign aluminum companies and the international financial industry We are very concerned about China's non-ferrous metals market. We will focus our research on non-ferrous metals products with a higher degree of internationalization and better liquidity, and allow foreign companies to participate in the Chinese futures market as soon as possible, which will help promote the actual development of the Chinese aluminum industry and the international market.

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