LONDON, Nov. 11 -- The LME is pleased to announce that the first long-term physical cobalt contract has been finalised incorporating an LME pricing formula.
Votorantim Metais Brazil has agreed a long-term sales contract with LN Metals International Ltd for deliveries in 2010 for a significant proportion of the company’s Tocantins brand export tonnage in cobalt metal.
For any new terminal market contract to gain traction physical material has to be priced basis the exchange formula. Votorantim’s decision is a significant development and reflects keen interest in the physical industry to take advantage of LME pricing and the Exchange’s other services.
The Brazilian company is one of a number of producers that has applied to list its cobalt brand. Others include Jinchaun Group, Sumitomo Metal Mining Co and Vale Inco.
The LME cobalt futures contract begins trading on February 22nd, 2010.