A nickel sulphate futures contract has been launched by Abaxx Exchange in Singapore to meet growing demand for battery ingredients and address price divergence between types of the metal.
Nickel sulphate is used to make batteries for electric vehicles, while the refined nickel that’s deliverable against London Metal Exchange contracts is mainly used for steelmaking.
There have been calls from the industry for new pricing systems that could serve as an alternative to the LME ever since a massive short squeeze on the bourse in early 2022.
The nickel sulphate contracts “meet the growing demand for reliable price benchmarks in a rapidly transforming market,” Abaxx Technologies, which majority owns the exchange, said in a statement on Friday.
“Nickel sulphate markets are evolving rapidly, and market participants need tools that reflect the realities of physical trading,” Nancy Seah, CEO of Abaxx Exchange, said in the statement.
The contracts are US dollar-denominated and physically deliverable in Singapore.
