LONDON (Reuters) – The London Metal Exchange (LME) said on Friday it had received an new application to list a Chinese nickel brand, as it seeks to boost liquidity in its nickel contract.
The world’s oldest and largest market for industrial metals said in a statement that Guangxi CNGR New Energy Science & Technology Co. Ltd had applied to list its primary nickel brand CNGR, without providing further details.
The LME, owned by Hong Kong Exchanges and Clearing Ltd., has seen nickel contract volumes improve this year, but they remain significantly below levels seen early last year before a trading crisis.
Part of the problem for liquidity has been low stocks in LME-approved warehouses, which the LME is trying to resolve with a quicker approval process for nickel brands that can be delivered against the LME’s contract.
The exchange has so far approved one new Chinese brand and received an application from another Chinese producer. It expects more producers to apply to have their brands approved.
(Reporting by Eric Onstad; editing by Christina Fincher and Alexander Smith)