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Votorantim and LN Metals agree first LME formula cobalt contract

November 16, 2009 - 00:00 GMT

The first long-term physical cobalt contract using a London Metal Exchange pricing formula has been finalised between Votorantim Metais Brazil and LN Metals International.

Votorantim agreed the long-term sales contract with the London-based trading house for deliveries in 2010 for a significant proportion of its Tocantins brand export tonnage in cobalt metal, the LME said.

For any new terminal market contract to gain traction, physical material has to be priced basis the exchange formula, according to the LME.

"Votorantim’s decision is a significant development and reflects keen...

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