SHANGHAI, Mar. 18 (SMM) – Mock trading was launched for nickel and tin futures contracts on Shanghai Futures Exchange (SHFE) yesterday.
Nickel futures contract will be traded in unit of 1 tonne per lot on SHFE, smaller than 5 tonne per lot for copper, aluminum, lead, and zinc, with minimum transaction margin 5% of contract value trading.
What impact will be on nickel prices after its debut trading on Mar. 27?
“The launch of nickel futures contract will help pick up trading sentiment, and it should be attractive to investors, ” said an analyst from Galaxy Futures told SMM in an interview.
“Nickel prices will be supported in the short run, but the support is not expected to be big due to poor market fundamentals,” the analyst added.
Another analyst from Xinhu Futures said the launch will provide a platform for domestic investors in hedging trading.
“The Shanghai/LME nickel price ratio is now rising, and short bets will happen if SHFE’s list price is higher,” said the analyst, adding that imports of ores and stainless steel production in China will place a bigger role on nickel prices.
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