Speculation in London Metal Exchange (LME) molybdenum futures may lead to increased price volatility, a report by metals and minerals information provider Roskill suggests.
The report claims the LME’s plan to turn molybdenum into an exchange traded commodity, with a contract due to launch on February 22, has been met with mixed reviews within the market and cites producers’ and consumers’ concerns that prices will become more volatile.
But Roskill’s report also stresses that many in the market have welcomed the LME’s move, and claims that, regardless of the platform used, molybdenum prices are expected to remain volatile and follow...