Following Wuxi Stainless Steel Exchange's public consultation on adding nickel briquettes for physical delivery, many market participants have said the move would generate more liquidity and bring transparency to the nickel briquette price, if successfully approved.
Queries on feasibility of nickel briquette Despite the general positivity regarding nickel briquettes, market participants have a few concerns on whether it can be successfully implemented. "I think [Wuxi's] rule on the production date is too stringent, as most existing nickel briquette here [in China] was produced in 2014 and 2015, and some are even older," a trader based in East China said. Nickel briquettes eligible for delivery should be material produced after January 1, 2017, according to Wuxi's public notice on May 31. Apart from the date issue, market participants think the discount of 700 yuan per tonne against Wuxi's nickel plate contract prices will deter...