The Multi Commodity Exchange of India Ltd. (MCX) has announced the launch of a Nickel futures contract, effective August 18, 2025. The new contract is aimed at strengthening price discovery, enabling efficient risk management, and encouraging wider participation across the value chain.
Nickel, a vital industrial metal, is extensively used in stainless steel production, electroplating, EV batteries, and various engineering applications. As India relies heavily on imports, consuming industries remain vulnerable to price fluctuations and supply disruptions. The futures contract will provide these industries with a robust hedging mechanism, helping them mitigate price risks and improve competitiveness.
Being INR-denominated, the contract will allow participants to hedge both commodity price risk and currency risk. Apart from physical market players, it will also open opportunities for financial participants and investors, offering diversification and liquidity as an asset class.
The contract specifications include a trading unit of 250 kg and delivery unit of 1,500 kg, applicable from the September 2025 expiry onwards. Contracts will expire on the third Wednesday of the expiry month, or the preceding working day if it is a holiday. Deliveries will take place over the last three working days of the contract month at the designated delivery centre in Thane. Only LME-approved primary Nickel cathodes with a minimum purity of 99.80% will be accepted as good delivery.
The contract will have a tick size of ?0.10 per kg, a daily price limit of 4%, and margins set at a minimum of 10% or SPAN, whichever is higher.
Commenting on the launch, Ms. Praveena Rai, MD & CEO of MCX, said:
"This listing is part of MCX’s efforts to make base metals contracts more efficient, transparent, and aligned with evolving market needs. By optimizing trading units, expiry schedules, and delivery centres, we are enhancing liquidity, delivery predictability, and aligning product structures with global benchmarks. Our vision is to position India as a price setter for key commodities, driving security and self-sufficiency in the long run."