Abaxx reports first trade in new nickel sulphate futures contract
13th January, 2025|Gregory Rosenvinge
Abaxx Exchange completed its first nickel sulphate futures block trade on the first day of trading the contract, marking the nascent commodities market’s first new product since opening in June last year.
Singapore-based Abaxx Exchange, which launched the nickel contract on Friday, said on Monday the new contract, which is physically deliverable in Singapore, got off the mark with a block trade between Traxys and HNK Alpha, brokered by StoneX. Both counterparties traded five lots on Friday at a price of $14,600 ($12,042) per tonne of nickel.
“Traxys is proud to be at the origin of the first nickel sulphate trade on the newly created Abaxx international exchange,” said Traxys head of nickel Jan Wessels on Monday. “We are pleased with the launch of Abaxx nickel sulphate futures contracts which will provide us with a further hedging tool of our physical book.”
HNK Alpha chief executive Henky Toha said: “As a liquidity provider in multi asset financial instruments, HNK Alpha is delighted to be involved in the pioneer trade of Abaxx's nickel sulphate futures. We hope this will kickstart liquidity and create plenty of trading opportunities in this contract which is highly relevant to the world's green energy transition.”
Abaxx Exchange said the new nickel sulphate futures are designed to deliver “better price discovery and risk management tools for market participants in this battery metal critical to the energy transition to a lower carbon economy”.
“Participants in the global nickel market are seeking better pricing solutions that can encompass refined metal and new streams of nickel products flowing into the fast-growing electric vehicle battery sector,” said the Singapore-based exchange owned by Abaxx Technologies in a written statement.
“A physically-settled nickel sulphate contract, rather than a contract for Class 1 refined nickel, can better capture the fastest-growing segment of the global market.”
Upon launch on Friday, Abaxx Exchange said the US dollar-denominated, physically-delivered futures contract reflects “accelerating” demand for critical battery metals, addng demand for nickel sulphate, a key component in EV batteries, is projected to grow at a compound annual rate of 22% from 2020 to 2030.
The nickel sulphate future represents Abaxx Exchange’s first new contract since opening in late June with liquefied natural gas (LNG) and carbon futures.
Nickel demand continued to recover last year from the turmoil in March 2022 when the London Metal Exchange (LME) controversially closed its market. In 2024, the HKEX-owned exchange saw nickel futures and options trading volume (ADV) surge 58% on 2023's total to an average daily volume (ADV) of 65,094 contracts.
