BEIJING- The Shanghai Futures Exchange (SHFE) will explore and promote a nickel futures internationalization plan, according to a report by the China Nonferrous Metals Industry Association (CNIA) on Tuesday.
The exchange will make efforts to seize opportunity as the global nickel pricing system undergoes a restructuring, Zhang Ming, deputy general manager of the SHFE, told a meeting hosted by the CNIA.
Reuters reported in September that the exchange was looking into the possible launch of nickel futures for international use, a potential challenge to the London Metal Exchange’s (LME) contract.
LME prices have been used as a global benchmark by the nickel industry. The metal is used to manufacture stainless steel and electric vehicle batteries.
But market confidence was shaken by a trading debacle in March 2022 that rocketed nickel to a record above $100,000 a metric ton, leading many users to abandon the LME.
The Shanghai exchange will work on listing of green products – aluminum and recycled lead, mineral resources that China is rich in, including magnesium and tungsten, and battery materials.
For the listed products, it will broaden their internationalization system, while promoting the establishment of overseas delivery warehouses, Zhang said.
