LME Approves First Indonesian Nickel Brand for Delivery Against Primary Nickel Contract
The London Metal Exchange (LME) has approved the listing of the first Indonesian brand eligible for delivery against the exchange's primary nickel contract, bolstering the selling power of the world's largest nickel producer. This milestone marks Indonesia's emergence as a significant player in high-purity nickel production, which is traded on the LME, the world's largest and oldest metals trading venue.
The newly approved DX-zwdx brand, produced by PT CNGR Ding Xing New Energy with an annual capacity of 50,000 metric tons, can now be delivered against the LME's nickel contract effective immediately. This approval is a significant step for Indonesia, which has rapidly increased its global nickel production but has not previously produced substantial amounts of the high-purity nickel required for LME trading.
The LME, owned by Hong Kong Exchanges and Clearing Ltd, has been actively adding new nickel brands to its listings as part of a broader strategy to revive nickel trade volumes following the 2022 crisis. The crisis, which occurred in March 2022, saw nickel prices more than double in a matter of hours, leading to a chaotic market situation and forcing the LME to suspend trading for over a week. While nickel trade volumes have since partly recovered, the addition of new brands aims to further stabilize and enhance market activity.
The inclusion of PT CNGR Ding Xing New Energy's nickel brand is expected to strengthen Indonesia's position in the global nickel market and provide additional liquidity and stability to the LME's nickel trading platform.
