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.
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.
Available Lithium Contracts:
Liquidity Considerations:
Price Correlation:
Hedging Process:
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.
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.
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.