The London Metal Exchange has listed its first minor metals brand – Vale Inco Electrolytic Cobalt Rounds from Canadian producer Vale Inco – for delivery against the LME’s new cobalt contract.
LME contracts for minor metals are due to launch on 22 February 2010 and will provide transparent pricing and risk management tools for the cobalt and molybdenum industries.
Cobalt and molybdenum are by-products of metals already traded on the exchange but until now there has been limited opportunity to manage risk in the minor metals sector.
“Registering brands is a crucial element to the contract launch and it’s a positive sign that producers in both industries are participating in the process,” says Liz Milan, commercial director at the LME.
The LME’s physical operations department is also assessing a number of applications from other producers in both the molybdenum and cobalt industries.