LME to launch lithium contract to help market hedge risks

The London Metal Exchange will launch a new lithium futures contract on Monday July 19, settled against Fastmarkets’ assessment for battery-grade lithium hydroxide. The contract will help cater to a growing need among original equipment manufacturers (OEMs), improving risk management across the supply chain, experts said.

Antonio Masiero, the LME’s product development manager, confirmed the launch during a webinar titled “LME and Fastmarkets: Spotlight on Lithium” on Wednesday July 14.

“We started from lithium hydroxide,” Masiero said, “and I am sure it will not be the last lithium contract that the LME launches.”

The lithium contract will be cash-settled against Fastmarkets’ price assessment for lithium hydroxide monohydrate, 56.5% LiOH.H2O min, battery grade, spot price, cif China, Japan & Korea.

Fastmarkets’ latest price assessment for this was $14.50-16.50 per kg on July 8, close to twice what...


Sofia Okun

July 14, 2021

20:33 GMT