Guangzhou exchange to trade lithium hydroxide from November 26
China's Guangzhou Futures Exchange will trade lithium hydroxide futures contracts from November 26, it said in a statement on Friday.
The bourse will trade lithium hydroxide options contracts from November 27, it said in a separate statement.
Trading margins – deposits of cash or collateral to cover potential losses on trades – for lithium hydroxide futures contracts have been set at 11%.
The daily price limit – the maximum the price of a contract can rise or fall in a trading day – for the new contracts is set at 18% of the basis price on the first trading day.
The first batch of tradable futures and options contracts is those to be delivered during the June-to-November 2027 period.
In July, Reuters reported that the Guangzhou exchange aimed to launch its second lithium futures contract by the end of this year, in a push to expand hedging tools for its vast electric vehicle battery supply chain and gain more global pricing power over the battery metal.
The Guangzhou bourse has offered lithium carbonate futures since July 2023.