MCX announces launch of Nickel Futures contract

The Multi Commodity Exchange of India Ltd. (MCX), has announced the launch of Nickel futures contract effective August 18, 2025. The contract will contribute to efficient price discovery and encourage greater value chain participation across the country.

Nickel is a critical industrial metal and a key raw material in the stainless steel making, electroplating, EV batteries and other engineering industries. As India is dependent on Nickel imports, the Nickel consuming industries are exposed to price volatility and supply disruptions, adding significant pressure on their business margins.

The launch of the Nickel futures contract will provide a robust mechanism for these industries to help them manage their price risks, making them more competitive. As the contract is an INR denominated one, it will help the participants to not only hedge their commodity price risk but also their currency risk. In addition to physical market players, the contract will provide opportunities to financial participants and investors as an asset class for portfolio diversification and liquidity.

The trading unit and the delivery unit will be 250 kgs and 1500 kgs respectively, effective from the September 2025 expiry contract onwards. The last trading day will be the third Wednesday of the expiry month, or the preceding working day in case of a holiday. Thane will be the designated delivery centre and the delivery period will be the last 3 working days of the contract month. The Exchange will accept only LME approved Primary Nickel cathodes with minimum purity of 99.80% as good delivery.

The tick size will be ₹0.10 per kg, daily price limits of 4%, and margins set at a minimum of 10% or SPAN, whichever is higher.

Commenting on the development, Ms. Praveena Rai, Managing Director, and Chief Executive Officer of MCX, said, "This listing is part of MCX's ongoing efforts to make base metals contracts more efficient, transparent, and aligned with evolving market needs. By introducing an optimal trading unit, expiry schedules, and delivery centre, we are providing market participants with improved liquidity, greater predictability of delivery location and a product structure that matches global benchmarks. Our vision is to make India our own price setter for commodities we consume in the country's drive towar\ds security and self sufficiency."

Shares of Multi Commodity Exchange of India Limited was last trading in BSE at Rs. 8148.75 as compared to the previous close of Rs. 8337.60. The total number of shares traded during the day was 35078 in over 5510 trades.

The stock hit an intraday high of Rs. 8388.25 and intraday low of 8080.55. The net turnover during the day was Rs. 287677806.00.

Source : Equity Bulls

Keywords

MultiCommodityExchangeofIndia INE745G01035 MCX NickelFuturesContract Launch