London 29/06/2015 - The Shanghai Futures Exchange (SHFE) has approved three Norilsk Nickel brands for delivery against its futures contracts, the exchange said.
The exchange has registered three brands - Norilsk Combine H-1, Severonickel Combine H-1 and Serveronickel Combine H-1Y - making Norilsk Nickel the first foreign producer to be approved for physical delivery, it said in a statement. It joins six Chinese producers, including Jinchuan, whose metal is eligible for delivery.
Trading volumes in SHFE nickel futures, which rolled out in March, have increased sharply recently. Open interest remains high for July at 123,868 lots after spiking to 143,300 lots on May 5. Meanwhile, deliverable nickel stocks currently listed on SHFE are just 10,000 tonnes.
The SHFE has been reviewing applications from several foreign nickel producers amid a squeeze in the July contract. Approval for Norilsk's metal was delayed due to a dispute over the terms of its registration, FastMarkets understands.
(Editing by Mark Shaw)