SHFE Bolsters Nickel Futures Market with New Brand Listings

The Shanghai Futures Exchange (SHFE)

The Shanghai Futures Exchange (SHFE) has recently enhanced its nickel futures market by approving the registration of two new nickel brands, HUAYOUgx and CNGR, on 20 December. This decision marks a significant step in increasing market liquidity and underscores the growing influence of Chinese brands in the global metal markets.

New Additions to the Nickel Futures Market

HUAYOUgx is produced by Huayou, one of China's leading battery metals and materials producers, at its subsidiary in Yulin, located in the Guangxi province. This brand boasts a registered annual capacity of 30,000 tonnes per year. Similarly, CNGR, produced by CNGR's subsidiary in Quinzhou, Guangxi, has a registered capacity of 25,000 tonnes per year. These additions are part of SHFE's broader strategy to enhance the dynamics of its nickel futures offerings.

In 2024, SHFE approved four new brands, adding a total of 121,000 tonnes per year of newly registered capacity. This initiative is aimed at improving the liquidity of nickel trading on the exchange, making it more attractive for investors and industry stakeholders.

International Recognition and Future Prospects

Both HUAYOUgx and CNGR have not only secured approval from SHFE but also received green lights from the London Metal Exchange (LME) through its fast-track system earlier this year. The fast-track system expedites the process of listing new metal brands, facilitating quicker entry into the market.

Additionally, the LME is currently reviewing an application from another Chinese nickel producer, Jien, submitted on 25 November. Approval of Jien's brand would further extend the roster of Chinese and Asian nickel brands on LME, potentially increasing the total registered capacity for new brands from these regions to 126,600 tonnes and 176,600 tonnes per year, respectively.