Battery Metals & New Energy Materials

Powering the Energy Transition

The green energy transition is driving unprecedented demand for critical metals like copper, nickel, and lithium, essential for modernising transportation, power grids, and energy production. At BANDS, we help both industrial companies and traders manage their price exposure in the global commodity futures market, providing access to major exchanges across Asia, Europe, and America.

Featured Contracts

28
58.69
Ni
Nickel

LME Nickel

Contract size: 6 MT
Physically Settled (global)

SHFE Nickel

Contract size: 1 MT
Physically Settled (China)

abaxx Nickel Sulphate

Contract size: 5 MT
Physically Settled (Singapore)

3
6.94
Li
Lithium

GFEX Lithium Carbonate

Contract size: 1 MT
Physically Settled (China)

COMEX Lithium Hydroxide

Contract size: 1 MT
Financially Settled

COMEX Lithium Carbonate

Contract size: 1 MT
Financially Settled

abaxx Lithium Carbonate

Contract size: 1 MT
Physically Settled (Singapore, Netherlands, USA)

27
58.93
Co
Cobalt

COMEX Cobalt

Contract size: 2,204.62 pounds
Financially Settled

LME Cobalt

Contract size: 1 MT
Physically Settled (global)

29
63.55
Cu
Copper

LME Copper

Contract size: 25 MT
Physically Settled (global)

INE Bonded Copper

Contract size: 5 MT
Physically Settled (China)

COMEX Copper

Contract size: 25,000 pounds
Physically Settled (USA)

Navigating Volatility

As the world transitions towards a more sustainable future, everything from energy systems to transportation is undergoing rapid change. Geopolitics are reshaping global supply chains, and the future is becoming increasingly unpredictable. This uncertainty is reflected in the volatility of commodity prices.

Since 2020, nickel prices have fluctuated between $10,000 and over $30,000. Copper prices surged from $6,000 to reach a new all-time-high of over $11,000 in 2024. Meanwhile, lithium carbonate prices plummeted from over RMB 220,000 in August 2023 to RMB 85,000 in less than 4 months.

These price swings pose significant challenges for companies, particularly those managing tight cashflows, unable to pass on increased input costs, or holding large inventories that can rapidly lose value during downturns.

At BANDS, our experienced trading desk works with clients across the world to support their hedging and risk management needs in the futures market.

Case Study: Battery Energy Storage System Developer

Background

A European developer of grid-scale battery storage systems sources batteries from a supplier in China. The batteries are priced based on the prevailing lithium carbonate price, which can fluctuate significantly. To achieve price stability and predictability, the developer seeks to lock in the current market price.

Lithium Market Overview

Available Lithium Contracts:

  • China: Guangzhou Futures Exchange (GFEX) offers lithium carbonate futures.
  • US: COMEX offers both lithium carbonate and lithium hydroxide futures.

Liquidity Considerations:

  • GFEX lithium carbonate futures are the most liquid but were only accessible to domestic Chinese market participants at the time.
  • COMEX lithium carbonate futures lacked sufficient liquidity.
  • COMEX lithium hydroxide futures were both liquid and available to European companies.

Developing a Hedging Strategy

Price Correlation:

  • Determine the price correlation between the COMEX lithium hydroxide contract and the price referenced in the supply contract.
  • Given the strong correlation between the two prices, the developer implemented a partial hedge by purchasing lithium hydroxide futures.

Hedging Process:

  • Purchase lithium hydroxide futures on COMEX to lock in the current market price.
  • Rising futures prices will mitigate potential losses in the event of rising physical market prices.
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Seamless Market Access

Global Connectivity

Based in Hong Kong, BANDS offers clients the ability to trade simultaneously in both the Chinese and international markets from a single account. As arbitragers, hedgers or directional traders, our clients are active on all major international exchanges in Asia, Europe and America.

Transparent Pricing

We provide a trading screen to all clients free of charge, allowing clients to track market prices in real-time and execute orders directly by themselves in all electronically traded markets - no hidden markups, no execution delays.

Technology

BANDS offers a wide range of platforms, including Esunny, CQG, and TT. For clients that require custom solutions we also provide API and FIX connectivity, while Esunny supports program trading through its Python integration.

BANDS Staff

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