Abaxx launches nickel sulphate futures in first new product since opening

The Singapore-based exchange, which announced last month the January 10 launch date of its first metal contract, said the US dollar-denominated, physically-delivered futures contract reflects “accelerating” demand for critical battery metals.

“Nickel sulphate markets are evolving rapidly, and market participants need tools that reflect the realities of physical trading,” said Abaxx Exchange chief executive Nancy Seah.

“Our physically-deliverable futures contracts provide not just price discovery, but a trusted benchmark that participants can align with for financing, supply chain planning, and long-term contracting — moving markets forward toward smarter solutions.”

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, according to Abaxx Exchange, “driven by the energy transition and the global push to secure critical supply chains”.

The Singapore-based exchange explained the nickel sulphate futures contract will be sold in units of five tonnes of nickel contained, delivered at place (DAP) and physically deliverable in Singapore.

The latest product launch 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.

Speaking on a podcast published last weekend, the chief executive of Abaxx Technologies said its nascent commodities market is eyeing more metals futures including gold and lithium contracts to complement the nickel sulphate futures launch.

Gold futures are expected to be launched by Abaxx in the first quarter, subject to relevant regulatory approvals, according to a November presentation by the company.

Speaking to FOW in July, Abaxx Exchange president of strategy and development Dan McElduff said the firm has designed its technology platform to enable rapid growth.