BHP Group, the world's largest listed miner, said nickel contracts on the London Metal Exchange did not represent the spot market and reform was "long overdue".
Falling volumes since last year's nickel fiasco, when the LME suspended trading for more than a week, have added to the problems at the world's largest and oldest metals forum.
Nickel prices on the LME doubled to a record high of more than $100,000 a tonne on March 8 as large short positions, or bets that prices would fall, were cut, leading the exchange to cancel all nickel trading for the day.
"The LME's metal delivery rules are long overdue for reform. The LME short event highlights vulnerabilities that have existed for a number of years, "Huw McKay, vice president of group market analysis and economics at BHP Billiton, said in the company's latest economic and commodity outlook released in Australia on Tuesday.
An LME spokesman said in an email that the exchange "recognises that a structural shift is taking place" in nickel markets.
The spokesperson said in an email: "We are committed to working with industry to ensure that LME's products meet the industry's evolving pricing and risk management needs... We will continue to explore ways to improve the contract specification."
Nickel, the main component of stainless steel, is now also a key material in the electric vehicle industry, used in the cathode components of batteries.
The global nickel trade was typically priced using the LME contract until March 2022, but concerns about the reliability of LME prices have led some producers and consumers to try to find alternatives.
"The reality is that the global price discovery mechanism for this critical component of the energy transition is not working well," Mackay said.
"The basic tension is that the exchanges that set the benchmark prices are increasingly disconnected from what is happening in the physical clearing market in China," Mr Mackay added.
