The LME announced that a second long term physical cobalt contract has been finalized incorporating an LME pricing formula.
Jiangsu Cobalt Nickel Metal Co Ltd has agreed a long term sales contract with LN Metals International Ltd for its 2010 export quota of the company’s KLK brand cobalt metal which received LME brand registration on January 29th 2010.
For a terminal market contract to gain traction physical material has to be priced basis the exchange formula. Jiangsu’s decision is a further significant development and reflects keen interest in the physical industry to take advantage of LME pricing and the Exchange’s other services.
Others producers that that have obtained LME registration include Jinchaun Group, Sumitomo Metal Mining Co, Votorantim, Kasese, Norilsk Nickel and Vale Inco.
The LME cobalt futures contract begins trading on February 22nd 2010. |
