In the first quarter, LME trading volume increased sharply, the total nickel position increased by 47% year-on-year

In the first quarter, LME trading volume increased sharply, the average daily trading volume of lead hit a record high in March, and the total nickel position increased by 47% year-on-year

Trading Summary

In the first quarter of 2024, LME trading volume increased significantly, with the average daily total volume of futures contracts increasing by 31% compared to the same period last year, and the total open interest (MOI) increasing by 21% compared to the same period last year. Among them, lead saw the most significant growth in trading volume, with an average daily volume of 83,000 contracts in March 2024, up 48% from the same period last year. The average daily volume of nickel contracts increased by 75%, and the total open interest (MOI) increased by 47% compared to the same period in 2023. Among them, options trading also hit a five-year high.

Low-carbon nickel:

Market feedback and trading data update In response to the recent heated discussion about low-carbon nickel, the LME issued an announcement in early March indicating that the LME currently believes that the best solution for "green" nickel is currently considered by the LME – due to the low proportion of total nickel trading volume of all nickel transactions, the market has not yet reached a consensus on "green" nickel, and the LME has required all brand producers to meet the relevant requirements for responsible sourcing, we do not believe that there is currently any need to modify existing nickel contracts or introduce new contracts. Following the announcement, we received positive feedback from the market and Metalshub published an update on Tier 1 nickel trading data. Please refer to Circular No. 24/165.

In September last year, we announced an update to the LME's closing price methodology, which aims to improve the price discovery process for closing prices, increase transparency, participation and standardization. The calculation method has been applied to aluminum and lead from January 2024 and to copper, zinc and nickel from March 18, 2024.

For more information, please see: https://www.lme.com/en/Market-data/LME-reference-prices/LME-Closing-Price/Closing-Price-methodology-evolution

Please do not hesitate to contact Jean at jeantang@smm.cn or 86-19946295759 if you have any question or inquiry.