Korea Zinc pulls $1.8 billion share sale plan after probe
The world’s largest zinc smelter has been caught up for months in a fight between its largest shareholders over strategy and direction.
A new Singapore-based commodities exchange plans to launch trading in the next few months in the world’s first futures contract for nickel sulphate, an executive told Reuters on Friday.
The launch of the futures contract for a type of nickel used in electric vehicle (EV) batteries was made possible after authorities in Singapore on Thursday granted approval for the Abaxx exchange and clearing house.
“First trade is now expected over the next few months,” said Josh Crumb, CEO of Canadian-listed Abaxx Technologies Inc, which owns the exchange.
“We’re currently working with our clearing members and the metal trading community to finalize a Q1 first trade date.”
Abaxx executives told Reuters in October that in addition to the initial three futures contracts in nickel sulphate, liquefied natural gas (LNG) and carbon, the exchange aimed to add contracts for other metals used in EV batteries.
The new Abaxx nickel contract will be physically settled but does not have a network of warehouses for delivery like dominant metals market London Metal Exchange (LME).
Instead, Abaxx futures contracts facilitate delivery directly from seller to buyer.
The existing nickel futures contracts on the LME and the Shanghai Futures Exchange both trade in Class 1 refined nickel.
(By Eric Onstad; Editing by Mark Potter)
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