The first delivery-month position transfer of SHFE nickel futures by an overseas trader was concluded recently, marking the completion of the whole process of nickel futures internationalization from trading and clearing to delivery.

Since SHFE opened its nickel futures and options to overseas traders and Qualified Foreign Investors (QFI) in April 2026, overseas participation has increased gradually. A growing number of overseas clients have entered the market—including producers, trading houses, transnational industrial enterprises, and financial institutions from 18 countries and regions. Additionally, 38 Overseas Intermediaries have been registered with SHFE.

Supported by an optimized delivery process, SHFE’s nickel futures market is seeing steady growth. Between April 22 and the end of August this year, its average daily volume and open interest reached 357,000 and 343,000 lots, respectively. Nickel products from 16 brands, both domestic and foreign, are deliverable through SHFE. The willingness of overseas enterprises in participating in domestic futures markets keeps increasing.

FREEPOINT COMMODITIES SINGAPORE successively executed position transfers for buy-side and sell-side delivery in August and September 2026, through its broker -- Orient Futures, shifting its Nickel Futures positions to a mainland-based entity that has a reported actual control relationship, Freepoint Commodities Trading (Shanghai). The position transfer process for both the buy-side and the sell-side applications was completed smoothly within a single business day, and the physical delivery thereafter was also completed successfully.

Industry leaders have welcomed this development. David Messer, CEO of Freepoint Commodities, noted that this mechanism enhances cross-border price convergence and strengthens the global nickel pricing system. Huayou Hong Kong, a wholly owned subsidiary of Zhejiang Huayou Cobalt, also highlighted that it’s actively engaged in the trading of SHFE’s internationalized nickel futures, and will participate in the position transfer mechanism based on its business operations in the spot market.

COFCO Futures International and other Overseas Intermediaries praised the good liquidity, fair transaction cost, and clear risk management system of the SHFE nickel market. An international trading company participated in SHFE nickel trading said that the internationalization of SHFE’s nickel futures helps it conduct cross-market arbitrage, lock in profits, hedge currency risks, and improve capital efficiency.

As the world’s largest consumer and importer of nickel, China is a vital market to many nickel companies that have strong risk management needs across procurement, inventory management, and sales activities. SHFE’s new position transfer mechanism allows global producers, consumers, and trading houses to seamlessly convert overseas positions into mainland inventory and sales, offering robust tools to manage price risks in international trade.

Going forward, SHFE will continue to offer more internationalized products, build a well-functioning market, and facilitate the participation of both domestic and overseas entities by improving its business rules, strengthening market cultivation, further opening its market, and upgrading its technological infrastructure and delivery services, so as to better serve the risk management needs of market participants both at home and abroad.