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LME prepares for cobalt, moly contracts

August 01, 2009 - 17:46 GMT Location: London

KEYWORDS: london metal exchange , cobalt , molybdic oxide , molybdenum

When the London Metal Exchange launches its molybdic oxide and cobalt contracts early next year, market participants will be able to trade minor metals on an exchange for the first time

Coming two years after the LME first announced it would conduct a study into the two metals, producers, traders and consumers are now considering making provision for the LME prices in their 2010 contracts. The exchange’s plans were initially met with reservation by some in the minors and ferro-alloys markets. Sceptical market participants cited May 2007’s nickel prices above $50,000 per tonne as a reason to keep minors off the LME. Market participants voiced fears about hedge fund interference in the molybdenum and cobalt markets, saying that they are too small to gain liquidity on the exchange. World...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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Comment & analysis

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