Minor Metals

LME Cobalt and LME Molybdenum

LME Cobalt and
LME Molybdenum Contract specifications

Setting the industry benchmark Why hedge using the LME? LME Molybdenum LME Cobalt
Transparency and price risk management are available to the cobalt Industry users who manage price risk on the LME can achieve
Quality Molybdenum of between 57 and 99.3% cobalt and higher
and molybdenum industries via LME futures contracts. a variety of benefits:
63% purity contained in roasted
molybdenum concentrate (RMC)
With more than 135 years of history, the LME is the world’s premier metal • Protection against price movements
exchange, where prices discovered during regulated trading are used • Ability to offer long-term fixed price sales Impurity levels Copper 0.5%, lead 0.05%, As specified by producers of each
as reference prices in the majority of the world’s physical metals market. • Improved budget forecasts of both costs and profits phosphorous 0.05%, sulphur 0.1%, brand in the LME approved list
• Stock can be turned into cash or security for finance carbon 0.1%
Our contracts provide access to the most transparent prices in the • Swap physical material on a location and brand basis
Shape Powder packed in drums Cathodes (broken or cut), ingots, briquettes or rounds
industry and the opportunity to mitigate risk and manage price volatility • Access the Exchange’s delivery mechanism as a source of material in times
through hedging. of extreme shortage, and as a channel to sell in times of surplus. Lot size 6 tonnes of molybdenum (with a 1 tonne
tolerance of +/- 5%) contained in RMC

Delivery size 10 tonnes (RMC), deliverable in 200 or 1 tonne lots in 100-500kg drums
LME pricing Trading and price performance
250kg drums of uniform size and weight of uniform size and weight
The LME offers the only exchange-traded benchmark price for cobalt LME minor metals closing prices (3 months) Brands 8 global brands and growing 23 global brands and growing
and molybdenum and leading producers of minor metals are already using it.
LME Cobalt LME Molybdenum Delivery locations North America, Europe and Asia North America, Europe and Asia
Why is this important?
50,000 Please see lme.com for further details
Transparent: LME prices are transparent, based on actual trades 45,000
bids and offers.
40,000 Trading the contracts
Trusted: LME prices are trusted because they are a true reflection
$ per tonne

of global supply and demand thanks to our international user base 35,000
Quotation US dollars per tonne
and warehouse network. 30,000
Robust: More producers and consumers are entering the market, Settlement dates • Daily from cash to 3 months
25,000
providing more liquidity and even more robust pricing. • Weekly (every Wednesday) from 3 months to 6 months
20,000
Daily: Each day real buyers and sellers set the price and these prices • Monthly (every third Wednesday) from 7 months out to 15 months
are available all of the time, in real time. 15,000
Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Clearable currencies US dollar, Pound sterling, Euro, Japanese yen
Regulated: The Exchange, and therefore the price, is regulated – 2010 2011 2012 2013
users can be certain that the price is formed in a fair and orderly market. Minimum price movement Ring Outright $0.50 Carries $0.01 LMEselect Outright $0.25 Carries $0.01 Inter-office Outright $0.01 Carries $0.01
Trading date
Trading platforms: Ring trading
Open-outcry or Ring trading is the central platform where LME official prices are established.
LME Cobalt and LME Molybdenum Ring trading times (UK time):
• 12.20 to 12.25
• Including daily Kerb trading

LMEselect
LMEselect is the official Exchange-operated electronic trading platform open from 01.00 to 19.00 (UK time)

Inter-office telephone
The Exchange supports an inter-dealer telephone market between LME members which operates 24 hours a day
Nothing in this document constitutes an
offer or a solicitation of an offer to buy or sell
any security or other financial instrument
or constitutes any investment advice or
recommendation of any security or other
financial instrument. To the best of the LME’s
knowledge and belief, statements made are
correct at the time of going to press.
All such statements and all opinions
expressed herein are published for the
general information of readers but are not to
be taken as recommendations of any course
of action. The LME accepts no liability for the
accuracy of any statement or representation.
LME contracts may only be offered or sold
to United States foreign futures and options
customers by firms registered with the
Commodity Futures Trading Commission
(CFTC), or firms who are permitted to solicit
and accept money from US futures and
options customers for trading on the
LME pursuant to CFTC rule 30.10.
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2014. No portion of this publication
may be reproduced without written
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