Singapore-based commodity marketplace Abaxx Echange plans to expand its battery metals product suite with new lithium carbonate futures contract due to launch early next month.
The firm hails the three new instruments, set to do live on 7 March, as the first physically deliverable lithium carbonate contracts priced in US dollars. Lots will represent 1t of lithium carbonate delivered at place (Dap) at ports in either Singapore, Rotterdam, or Baltimore.
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"The launch of Abaxx’s lithium carbonate futures introduces much-needed, physically deliverable benchmarks that reflect real market conditions, providing traders with a precise hedging instrument and greater optionality in managing supply chains,” says Sacha Lifschitz, Abaxx’s director of metals markets.
“With contracts deliverable in Singapore, Rotterdam, and Baltimore, we’re aligning with global trade flows to offer more effective risk management and price transparency in a rapidly evolving battery metals market," he continues.
Rival exchanges CME and SGX currently offer dollar-denominated lithium carbonate futures, but these are financially settled against a price provided by price reporting agency Fastmarkets. SGX also offers cash-settled lithium carbonate swaps.
Both exchanges and the LME also offer lithium hydroxide futures, while the CME has an options contract and the SGX a swaps contract. All are financially settled against a Fastmarkets price.
Abaxx’s current battery metals offering is a physically Singapore delivered futures contract for nickel sulphate.
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