What hedge method applies to aluminium ingot?

Direct MT. Commercial weight equals hedgeable weight. A 100 MT P1020A purchase creates 100 MT of LME Aluminium exposure.

How does this align with MCX Aluminium futures?

MCX Aluminium tracks LME Aluminium with an FX conversion. The derivation is identical; MCX lot sizing (5 MT per lot) happens at position entry, not in the catalog.

What if my contract is for a non-P1020A grade?

Create a separate product entry. Direct MT still applies provided purity ≥99%. Grades below that (alloy ingots) belong in Value Added Products with Metal Content %.

Do NALCO, Hindalco, and Vedanta ingots need separate entries?

No. All three sell LME-registered P1020A equivalents that hedge identically. Supplier distinctions are captured in the counterparty field at position entry.

Worked exampleAluminiumIngotRefined

Aluminium ingot

Name: Aluminium ingot
Brand: Novaex
SKU: aluminium-ingot

P1020A (99.70% Al min)

Primary aluminium ingots are the benchmark LME deliverable. Commercial weight equals hedgeable weight. The catalog stores the MT factor once so every ingot purchase or sale derives a clean hedge without spreadsheet lookups or manual LME conversion.

This page shows how the NovaEx wizard models one common configuration. Your contract may look different. Override any field per shipment, or clone the example to build your own.

Last updated: April 2026By NovaEx Product

Conversion recipe

1:1 weight

Hedge methodDirect MT hedge

FormulaHedgeable MT = Qty × UOM factor

Commercial UOMMT

Rounding ruledown

Sources

LME Special Contract Rules · Aluminium Association · ASTM B233 (Aluminium wire rod)

Industry-standard ranges shown. Actual contract terms vary per shipment; override at position entry.

Worked example

Typical shipment

Commercial qty

100 MT

As invoiced

Contained metal

100.00 MT

Aluminium inside the goods

Hedgeable metal

100.00 MT

Flows to hedge desk → LME Aluminium

100 MT = 100.00 MT contained Refined metal is 100% base metal → 100.00 MT Aluminium hedgeable

100 MT of P1020A aluminium ingot × 100% base metal = 100 MT Al hedgeable → hedge against LME Aluminium (or MCX ALUMINIUM).

Typical specifications

What you're actually trading

Reference specifications for contracts, counterparty conversations, and supply-chain planning. Not a substitute for the shipment's lab certificate or commercial contract.

Grade: P1020A
Purity: 99.70% Al minimum
Typical form: 22–23 kg ingots, T-bars up to 750 kg
LME-registered: Yes
MCX symbol: ALUMINIUM (5 MT lot)