The Shanghai Futures Exchange (SHFE), on Monday, August 10, launched trading in aluminium and zinc options. China, over the past three years, has launched 18 commodity options.
The country is the world’s largest production and trading market for non-ferrous metals. Aluminium futures contracts are listed on SHFE for the past 28 years.
“Options can well supplement futures,” said Zhao Jinhua, chairman of China Aluminum International Trading Group, in a Xinhua report.
He also said commodity options could help in meeting companies’ needs for flexible risk management and lower the cost of hedging, and thereby, could enhance competitiveness.
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Five of China’s commodity futures contracts are open to foreign investors, including futures in crude oil, natural rubber, low-sulfur fuel, PTA (purified terephthalic acid) and iron ore.
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