v5-0412 lme minor metals brochure-web

7/30/2019 V5-0412 LME Minor Metals Brochure-WEB

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Minor MetalsLME Cobalt and LME Molybdenum



QuotationUS dollars per tonne

Settlement dates

• Dailyfromcashto3months

• Weekly(everyWednesday)from3monthsto6months

• Monthly(everythirdWednesday)from7monthsoutto15months

Clearable currenciesUSdollar,Poundsterling,Euro,Japaneseyen

Minimum price movementRing Outright$0.50 Carries$0.01

LMEselect Outright$0.25 Carries$0.01

Inter-oce Outright$0.01 Carries$0.01

Trading platforms:Ring tradingOpen-outcryorRingtradingisthecentralplatformwhere

LMEocialpricesareestablished

LMECobaltandLMEMolybdenumRingtradingtimes(UKtime):

• 12.20to12.25

• Includingdailykerbtrading

LMEselectLMEselectistheocialExchange-operatedelectronictradingplatform

openfrom01.00to19.00(UKtime)

Inter-oce telephone TheExchangesupportsaninter-dealertelephonemarketbetween

LMEmemberswhichoperates24hoursaday

Trading the LME Cobalt

and LME Molybdenum

contracts Trading eatures



Transparencyandpriceriskmanagementarenowavailabletothecobaltand

molybdenumindustriesfollowingthelaunchoftheLondonMetalExchange

cobaltandmolybdenumfuturescontractsin2010.

Withmorethan135yearshistory,theLMEistheworld’spremiermetalexchange,wherepricesdiscoveredduringregulatedtradingareused

asreferencepricesinthemajorityoftheworld’sphysicalmetalsmarket.

Ourcobaltandmolybdenumfuturescontractsprovideaccesstothemost

transparentpricesintheindustryandtheopportunitytomitigateriskand

managepricevolatilitythroughhedging.

LME Cobalt and

LME Molybdenum

uturesSetting a new industry benchmark

Hedging benefts

Members o the cobalt and molybdenum industries can benet

rom managing price risk on the LME to achieve a variety

o outcomes:

• Asprotectionagainstpricemovements

• Tooerlong-termxedpricesales• Improvebudgetforecastsofcostsandprots

• Turnyourstockintocashorsecurityfornance

Using the LME also ofers the opportunity to:

• Accessatransparentreferenceprice

• Protectphysicalstockagainstafallinprice

• Swapphysicalmaterialonalocationandbrandbasis

• AccesstheExchange’sdeliverymechanismasasourceofmaterial

intimesofextremeshortage,andasachanneltosellintimes

ofsurplus

Trading and price perormance

Trading date

LME minor metals closing prices (3 months)

$

p e r t o n n e

L ME Cobalt LME Molybdenum

Feb2010

Apr2010

Jun2010

Aug2010

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug2011

Oct2011

Dec2011

Feb2012

28,00026,000

30,000

32,000

34,000

36,000

38,000

40,000

42,000

44,000

46,000

48,000



Contract specifcations

LME Molybdenum

Product specication

Molybdenumcontainedinroastedmolybdenumconcentrates(RMC)

Mo content

60%molybdenum+/-5%(Mocontent57-63%)

Impurity levels

Copper0.5%,lead0.05%,phosphorous0.05%,sulphur0.1%,carbon0.1%

Moisture 0.1%maximum

Lot size

6tonnesofmolybdenumcontainedinRMC

Delivery size

10tonnes(RMC),deliverablein200or250kgdrums

ofuniformsizeandweight

Delivery locations Rotterdam,Baltimore,Singapore

LME Cobalt

Co content99.3%cobaltandhigher

Impurity levels AsspeciedbyproducersofeachbrandintheLMEapprovedlist

ShapesCathodes(brokenorcut),ingots,briquettesorrounds

Lot size1tonne

Delivery size

1tonnelotsin100-500kgdrumsofuniformsizeandweight

Delivery locations Rotterdam,Baltimore,SingaporeandAntwerp



All trading on the LME takes place through LME member frms,

which include the world’s leading fnancial institutions and physical

trading companies. Members are divided into specifc categories,

each with dierent privileges (only category 1, 2 and 4 members

are allowed to issue LME contracts). They provide their clients with

a wide range o tailored services which enable them to manage

price volatility and beneft rom risk management activities.

What next?Contact an LME Category 1, 2 or 4 member frm directly.

A ull list o our members is available on the LME website at:

www.lme.com/membership

Or speak to us directlyChris Evans, Head o Business Development

LME Business Development

Email [email protected]

Tel +44 (0)20 7264 5555

You can also visit www.lme.com/minormetals for more information.

LME approved

minor metals brands Access to the LME

The producers below have brands approved for delivery against

the LME Cobalt and LME Molybdenum contracts:

Cobalt• CTT–CompagniedeTifnoutTiranimine

• GanzhouYiHaoUmicoreIndustriesCoLtd

• JiangsuCobaltNickelMetalCoLtd

• KaseseCobaltCompanyLtd

• LanzhouJinchuanAdvancedMaterialsTechnologyCoLtd

• MopaniCopperMinesPlc

• NantongXinweiNickel&CobaltHightechDevelopmentCoLtd

• NicometIndustriesLtd

• OJSCMMCNorilskNickel

• SichuanNi&CoGuorunNewMaterialsCoLtd

• SumitomoMetalMiningCoLtd

• ValeCanadaLtd

• VotorantimMetaisSA

• YantaiCashIndustrialCoLtd

Molybdenum• ChaoyangJindaMolybdenumCoLtd

• ChinaMolybdenumCoLtd

• ComplejoIndustrialMolynorSA

• JinduichengMolybdenumCoLtd

• MolibdenosyMetalesSA

• MolymexSAdeCV

• SadaciNV

• SeAHM&SCorp



The London MeTaL exchange LiMiTed | 56 Leadenhall Street, London EC3A 2DX

Tel +44 (0)20 7264 5555 | Fax +44 (0)20 7680 0505 | Email [email protected] V5.0/0412

Nothing in this document constitutes an

oer or a solicitation o an oer to buy or sell

any security or other fnancial instrument

or constitutes any investment advice or

recommendation o any security or other

fnancial instrument. To the best o the LME’s

knowledge and belie, statements made are

correct at the time o going to press.

All such statements and all opinions

expressed herein are published or the general

inormation o readers but are not to be taken

as recommendations o any course o

action. The LME accepts no liability or the

accuracy o any statement or representation.

LME contracts may only be oered or sold

to United States oreign utures and options

customers by frms registered with the

Commodity Futures Trading Commission

(CFTC), or frms who are permitted to solicit

and accept money rom US utures and

options customers or trading on the

LME pursuant to CFTC rule 30.10.

© The London Metal Exchange Limited,

2011. No portion o this publication

may be reproduced without written

consent. The London Metal Exchange

logo is a registered trademark o

The London Metal Exchange Limited.

v5-0412 lme minor metals brochure-web

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