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Nickel briquette – a key feedstock for stainless steel making as well as for nickel sulfate, for which use is growing in the electrical vehicles (EV) sector – is largely consumed in China. With demand expected to grow in China in the coming years because of the EV boom, market liquidity for nickel briquette will also increase.
The London Metal Exchange has already approved nickel briquette for physical delivery against its futures contract; the Wuxi Stainless Steel Exchange in China followed suit in initiating a public consultation late in May to add it for physical delivery, which is expected to increase nickel briquette liquidity in China.
Meanwhile, the Shanghai Futures Exchange is also mulling adding nickel briquette for physical delivery against its contract, according to market participants.
Metal Bulletin will monitor this market, ensuring it provides a representative pricing mechanism for nickel briquette.
The specification, delivery terms and publication timing – devised following initial discussions with key market participants in the market – are as follows:
Price: Duty-free nickel briquette cif Shanghai premium Grade: Nickel content 99.8% in line with LME specifications Origins: Australia and Madagascar Type: Assessed range Currency/unit: USD per tonne Min Lot size: 6 tonnes Payment terms: Letter of Credit and Telegraphic Transfer Delivery window: Within eight weeks Publication: Last Tuesday of each month
The consultation period for this proposed launch will end one month from the date of this pricing notice, with changes taking place from Tuesday October 30, 2018, subject to market feedback.
Metal Bulletin has no financial interest in the level or direction of this assessment.
To provide feedback on this price assessment or if you would like to provide price information by becoming a data submitter to this price, please contact Violet Li by email at pricing@metalbulletin.com. Please add the subject heading FAO: Violet Li, re: proposed Shanghai nickel briquette premium.
To see all Metal Bulletin’s pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html.