Cobalt and molybdenum have made an encouraging start to trading on the London Metal Exchange with volumes, liquidity and open interest building well since the launch on 22 February this year.
To date, 4,047 lots of cobalt have traded (equivalent to 4,047 tonnes/USD161m).
Molybdenum trading has seen 321 lots traded (equivalent to 1,926 tonnes/USD69m).
At the close of 19 August, market open interest – which is published by the exchange two days in arrears – in cobalt had grown to 406 lots (406 tonnes), while open interest in molybdenum stood at 41 lots (246 tonnes).
Nine cobalt brands have been registered, including Vale Inco, Norilsk and Votorantim, while seven molybdenum brands are registered, including Molymet, Molymex and China Molybdenum.
Chris Evans, head of business development at the London Metal Exchange, says: “This has been a very promising start for minor metals trading on the LME. The development of liquidity takes time and this first six months sets very good foundations to engage more brands, build the warehouse network and attract more users to the market looking for price transparency, risk management and the benefits of trading cleared contracts.”
