The London Metal Exchange (LME) has announced the details of its upcoming minor metals contracts for molybdenum and cobalt.
The contracts in question, which were approved for launch at the September 4 LME board meeting, will be operational in the second half of 2009.
Accordingly, as regards molybdenum, the contract lot size will be two mt gross of roasted molybdenum concentrates with a net weight of 1,190 kilos of molybdenum contained, equivalent to 59.5 percent molybdenum contained. The delivery points for molybdenum will be Rotterdam, Baltimore and Busan, South Korea, initially.
As for cobalt, the contract lot size will be one mt of cobalt metal with 99.3 percent and above cobalt content. The delivery points for cobalt will be Rotterdam, Baltimore and Singapore, initially.
LME said that, once launched, the contracts will offer all the benefits of an exchange traded product, allowing participants access to a transparently derived price and the ability to manage price risk.
Molybdenum and cobalt are derived from copper and nickel respectively, non-ferrous metals already traded on the LME.