Nickel Futures Margin & Contract Specifications

What Are Nickel Futures?

Nickel is a key industrial and new-energy metal. Its primary uses include stainless steel (about 60–70% of global demand), electric vehicle batteries (ternary lithium-ion batteries), alloy steels, aerospace, and chemical equipment. Nickel is highly sensitive to green energy and EV demand and is known for significant price volatility.
Nickel futures (MNI) are futures contracts based on nickel and are traded on the London Metal Exchange (LME).

Factors Affecting Nickel Prices

1. Indonesia’s Nickel Supply Policies

Major nickel-producing countries include Indonesia, the Philippines, Russia, and Canada. Indonesia currently supplies around 60% of global nickel, making its policies the single most powerful catalyst for nickel prices. Government actions such as mining quotas, export restrictions, or policy changes can easily push nickel prices higher.
As higher-grade, easily mined ores become depleted, the average ore grade in Indonesia is declining, which effectively raises the refining cost per unit of nickel.

2. Stainless Steel and EV Batteries

Stainless steel accounts for roughly 70% of nickel demand. With global infrastructure upgrades and China’s economic stimulus policies, stainless steel demand has maintained steady growth, providing a solid base for nickel prices.
Nickel is also used in EV batteries, where high-nickel chemistries are favored for premium long-range models, supporting demand for high-purity nickel. However, the growing adoption of lithium iron phosphate (LFP) batteries in mass-market vehicles—due to their cost advantages—has partially tempered expectations of explosive nickel demand growth from the battery sector.

3. Inventory Levels

Declining inventories at major exchanges such as the LME and the Shanghai Futures Exchange (SHFE) signal rising demand and tend to support higher prices. Persistently low nickel inventories are one reason nickel prices can experience amplified volatility.

4. U.S. Dollar Movements

U.S. Federal Reserve rate decisions influence nickel prices. When the U.S. dollar weakens, dollar-denominated nickel becomes cheaper for global buyers, typically pushing prices higher.

5. Policy and Geopolitics

The Russia–Ukraine conflict has disrupted exports of Russia’s high-purity nickel, providing underlying support for nickel prices.
In addition, government policies related to batteries and new energy can reshape nickel demand structures and, in turn, influence nickel prices.

Nickel Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Nickel Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for NickelFutures.