metals steel alloys

Posts Tagged ‘copper’

With the start of trading of the new futures contracts on molybdenum and cobalt on Monday takes the world’s largest Metal Exchange London Metal Exchange, the long-planned entry into the so-called Minor Metals (“side metals”). Both metals are obtained mainly as a by-product of copper and nickel production. Molybdenum is v.a. as an alloying element in steel production (about 70% of end-use) application. Cobalt is used as a super alloy such as in aircraft or as a component of lithium-ion batteries.

Unlike the “big” industrial metals such as copper, aluminum or zinc for molybdenum and cobalt futures so far no standard was available. The declared aim of the exchange operator is to establish a transparent and neutral price-setting mechanism to minimize counter party risk through the clearing and thus create the conditions for an efficient risk management. On the physical markets to enter the derivatives trading of cobalt and molybdenum has been included to date, largely positive. Unlike the introduction of steel futures in early 2008, both expressed a number of large consumers, but also well-known producers a fundamental interest in the use of new futures contracts.