London, 23 August 2010

Cobalt and molybdenum have made an encouraging start to trading on the London Metal Exchange ( LME) with volumes, liquidity and open interest building well since the launch on February 22nd this year.

To date, 4,047 lots of cobalt have traded (equivalent to 4,047 tonnes / $161 million).  Molybdenum trading has seen 321 lots traded (equivalent to 1,926 tonnes / $69 million).

-   Total notional value of contracts traded in first six months since launch - $230 million

-   Encouraging trading volumes, particularly in cobalt

-   Leading brands listed as good delivery

At the close of Thursday, 19th August, market open interest – which is published by the Exchange two days in arrears - in cobalt had grown to 406 lots (406 tonnes), while open interest in molybdenum stood at 41 lots (246 tonnes).

Nine cobalt brands have been registered, including Vale Inco, Norilsk and Votorantim, while seven molybdenum brands are registered, including Molymet, Molymex and China Molybdenum.

Chris Evans, Head of Business Development at the LME, said, “This has been a very promising start for minor metals trading on the LME. The development of liquidity takes time and this first six months sets very good foundations to engage more brands, build the warehouse network and attract more users to the market looking for price transparency, risk management and the benefits of trading cleared contracts. ”

Ends --