The London Metal Exchange (LME) has reported a record level of open interest for LME Cobalt Futures, two years on from the launch of its minor metals contracts.
LME launched the futures for cobalt, a key industrial metal, in February 2010 as a response to growing industry demand for an exchange based price risk mechanism.
LME Cobalt volumes remained strong in 2011, with 14,574 lots traded since launch, the equivalent of $540m. Market open interest in LME Cobalt has also reached a record 544 lots during February 2012.
“The minor metals contracts have had another strong year, particularly LME Cobalt which reached record volumes in December,” said Chris Evans, LME’s head of business development at the LME.
“We hope volumes and liquidity will develop further over the coming months as market users increasingly value our transparent pricing and risk management solutions.”
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