The London Metal Exchange said on Tuesday it has listed its first minor metals brand – from Vale Inco – for delivery against the Exchange’s new cobalt contract, which is due to be launched early next year.
The LME, the world’s leading exchange for non-ferrous metals trading, plans to launch cobalt and molybdenum contracts on Feb. 22, 2010, to provide transparent pricing for those industries.
“Registering brands is a crucial element to the contract launch and it’s a positive sign that producers in both industries are participating in the process,” Liz Milan, commercial director at the LME, said.
Vale Inco is a wholly owned subsidiary of Brazil’s Vale, the second largest mining company in the world. Vale bought big Canadian nickel miner Inco in 2006.
The nickel miner also produces, copper, precious metals and cobalt, used in aerospace and batteries for hybrid cars.
“The LME’s physical operations department is also assessing a number of applications from other producers in both the molybdenum and cobalt industries,” the exchange said in a statement.
Material stored in LME warehouses must be of an LME-approved brand or the production of an LME-approved producer, conforming to specifications covering quality, shape and weight. The Minor Metals Trade Association (MMTA) said last month that it would cooperate with the LME to provide weekly minor metals price quotes via a host system provided by the exchange, which will also offer technical support.