Shanghai Futures Exchange Aims for Nickel Futures Internationalization Amid Global Pricing Shift

The Shanghai Futures Exchange (SHFE) is set to explore and implement a nickel futures internationalisation strategy, the China Nonferrous Metals Industry Association (CNIA) disclosed in a recent report. This initiative seeks to capitalize on the evolving global nickel pricing landscape, according to Zhang Ming, the SHFE's deputy general manager.

In response to the challenges facing the London Metal Exchange (LME), particularly after a trading incident in March 2022 that dramatically spiked nickel prices, SHFE's move could potentially introduce a significant shift in the global benchmark for nickel pricing. Nickel, a crucial component for stainless steel and electric vehicle batteries, has traditionally relied on LME prices as the global standard.

Beyond nickel, the SHFE plans to focus on the listing of 'green' products, such as aluminium and recycled lead, as well as minerals where China holds considerable reserves, including magnesium and tungsten, and essential battery materials. Part of this broader strategy includes enhancing the internationalisation of its product offerings and establishing overseas delivery warehouses to facilitate global trade.