How do commercial businesses hedge aluminum futures price risk?

Commercial businesses hedge aluminum futures exposure using COMEX / LME-traded futures, options, and swaps referenced to the ALI benchmark contract. Essential lightweight metal contract for beverage packaging, automotive, aerospace, and building products.

What is the contract size for Aluminum Futures futures (ALI)?

The COMEX / LME ALI contract size is 25 metric tons (55,116 lbs), quoted in U.S. Dollars per metric ton, with a tick value of $12.50 per $0.50/metric ton per contract.

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Exchange Benchmark Coverage

Aluminum Futures

Primary ExchangeCOMEX / LME

Essential lightweight metal contract for beverage packaging, automotive, aerospace, and building products.

Contract Size & Unit25 metric tons (55,116 lbs)

Benchmark SymbolALI

Primary Price Volatility Drivers

•Smelter power costs (electricity prices in Europe/China)
•China smelter production caps
•Automotive production rates
•US import tariffs

Commercial Risk Hedging Tools

✓Packager call options for aluminum sheet inputs
✓Smelter power-to-aluminum margin hedges
✓Midwest Premium swaps

Physical Basis Dynamics & Location Differentials

The US Midwest Premium is added to the base metal price to account for local delivery, duties, and regional supply availability.

Advisory Engagement

Manage Aluminum Futures Volatility

Request a market-specific position review to evaluate basis risk, option collar boundaries, or swap pricing.