The London Metal Exchange (LME) announces that the first twelve months of trading in cobalt and molybdenum has concluded with good volumes since the launch on February 22nd 2010.
Cobalt trading has performed particularly well, with 7,825 tonnes traded during the year to February 21st. Molybdenum trading was 3,498 tonnes during the same period.
Cobalt traded in a $35,000 - $48,000 per tonne range during the year with moly in a $30,000 - $40,000 range, indicating a total trading value on the exchange of over $430 million.
Warehousing in both metals was dominated by Rotterdam while Singapore and Baltimore also attracted good warehouse activity in cobalt.
Brand registration for both metals has also been good, with good delivery brands registered from ten cobalt producers and seven molybdenum producers.
Chris Evans, Head of Business Development of the London Metal Exchange said, “This has been a very sound first year for minor metals trading on the LME. Volume and liquidity have developed well with good support from producers registering their brands. It illustrates the value of a transparent price discovery and risk management mechanism for these important markets and we are looking forward to growing liquidity.”
“More broadly it is also in line with the LME’s recent experience in expanding its product footprint with new metals contracts. It is now three years since we introduced steel billet trading and last year’s decision to merge two contracts into one global contract and develop US warehouse sites has resulted in a surge of business with 12.4 million tonnes traded in 2010. The first few weeks of this year have already shown very strong activity with some 2.4 million tonnes already traded, indicating again the value of a price discovery and risk transfer mechanism in this important reference price for global industrial activity.”
