Russian nickel will become a mark of the Shanghai Futures Exchange

Russian nickel may become one of the brands supplied to the Shanghai Futures Exchange, a spokesman for the exchange said. "Russian nickel is likely to become one of the representatives after the approval of issues on standards," the official said.

The Shanghai Futures Exchange now has 6 nickel brands and the number will increase, an official said at a high-level nickel supply meeting at the Shanghai Futures Exchange. Glencore's nickel will likely gain access to the Shanghai Stock Exchange as well, the official added.

The six Chinese producers, officially approved for the supply of nickel under a new Shanghai Stock Exchange contract, are unable to provide sufficient output to meet July shipments. The undersupply of these producers, as well as their reluctance to sell at the current low futures prices, helped expand spot premiums for local refined nickel production, which were at least double the premiums at the end of March.

The manufacturers supplied by the Shanghai Futures Exchange are Jinchuan Group, Xinjiang Xinxin Mining and Shanxi Huaze Nickel & Cobalt. However, July shipments are likely to decline unless the Shanghai Stock Exchange approves nickel imported from producers such as Russia's Norilsk Nickel for delivery under futures contracts, the sources said.

The supply of Russian metal from Norilsk Nickel has been discussed for the past two months, although the timing of approval has not yet been announced, according to a metal broker and a Chinese producer.