SHFE Nickel Inventory & Settlement
Warehouse inventory, futures settlement prices, and open interest data
About SHFE Nickel Data
SHFE nickel inventory tracks physical nickel stored in exchange-approved warehouses across China. Nickel demand is driven by stainless steel production (which accounts for roughly 70% of consumption) and the rapidly growing EV battery sector. China's position as both a major consumer and processor of nickel makes SHFE stocks a critical global supply indicator. This page also includes daily settlement prices, volume, and open interest data for all active nickel futures contracts, with historical data going back to 2020.
SHFE Nickel Futures Contract Details
The SHFE nickel futures contract has a standard lot size of 1 tonne (1,000 kilograms), priced in Chinese yuan (CNY) per tonne. The minimum tick size is 10 CNY/tonne, and contracts are available for delivery across multiple months. Initial margin requirements are typically 10-14% of the contract value, reflecting nickel's higher volatility compared to other base metals. Daily price limits are approximately 6% above or below the previous settlement price.
Physical delivery requires electrolytic nickel cathodes or briquettes meeting SHFE specifications, with a minimum purity of 99.8% Ni. Deliverable brands include registered domestic and international producers. Nickel products must be stored in SHFE-approved warehouses.
Notably, SHFE nickel deliverable grades are limited to Class 1 (refined) nickel products. This distinction is important because lower-grade nickel products (such as nickel pig iron and ferronickel) that are widely used in Chinese stainless steel production are not deliverable against SHFE contracts, creating potential disconnects between SHFE nickel pricing and the broader Chinese nickel market.
China's Nickel Demand: EV Batteries and Stainless Steel
China is both the world's largest EV market and the largest stainless steel producer, making it the single most important demand center for nickel globally. Stainless steel production accounts for approximately 70% of China's nickel consumption, driven by construction, appliances, and industrial applications. However, the fastest-growing source of nickel demand is EV batteries.
High-nickel battery cathode chemistries, such as NMC 811 (80% nickel, 10% manganese, 10% cobalt) and NCA (nickel-cobalt-aluminum), are preferred for long-range EVs due to their superior energy density. As Chinese EV manufacturers continue scaling production, battery-grade nickel demand is adding a new structural layer to the nickel market that SHFE inventory levels increasingly reflect.
SHFE nickel inventory movements should be interpreted in the context of this dual-demand structure. Drawdowns may be driven by stainless steel production cycles, EV battery manufacturing ramp-ups, or both simultaneously. Understanding which demand source is dominant at any given time helps explain the relationship between SHFE nickel prices and inventory changes.
Data Sources & Methodology
MetalCharts sources SHFE nickel settlement prices and weekly warrant stock data from official Shanghai Futures Exchange data feeds. Settlement prices are updated daily after market close, covering all active nickel futures delivery months with open, high, low, close, volume, open interest, and turnover figures.
Inventory data is published by SHFE on a weekly basis and includes per-warehouse breakdowns. Nickel inventory is displayed in metric tons as reported by the exchange. Historical data is available going back to 2020.
Frequently Asked Questions
- How is SHFE nickel inventory measured?
- SHFE nickel inventory is measured in metric tons. Nickel is stored as cathodes or briquettes meeting exchange specifications in SHFE-approved warehouses.
- Why is SHFE nickel inventory important?
- China is the world's largest stainless steel producer and a major EV battery manufacturer. SHFE nickel stocks reflect domestic demand from both sectors, making them a key indicator for the global nickel market.
- How does SHFE nickel differ from LME nickel?
- SHFE covers Chinese domestic nickel supply while LME provides global coverage. After the 2022 LME nickel squeeze, SHFE has gained importance as an alternative benchmark for nickel pricing.
- What is the SHFE nickel settlement price?
- The SHFE nickel settlement price is the official daily benchmark used for margin calculations and delivery invoicing. It reflects the weighted average of trades during the closing period and is a key reference for Chinese domestic nickel pricing.
- How does EV battery demand affect SHFE nickel?
- China is the world's largest EV market, and high-nickel battery cathodes (such as NMC 811 and NCA chemistries) require significant amounts of Class 1 nickel. As EV production scales up, battery-grade nickel demand increasingly competes with traditional stainless steel consumption, creating new demand dynamics reflected in SHFE nickel pricing and inventory levels.
- Why did SHFE nickel gain importance after 2022?
- Following the 2022 LME nickel short squeeze that disrupted trading for days, SHFE nickel gained credibility as an alternative pricing benchmark. Many Asian market participants shifted more of their hedging activity to SHFE, increasing liquidity and open interest on the Chinese exchange.