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LME Minor Metals Futures Summary Specifications

LME Cobalt and LME Molybdenum Futures Trading Features

• Commenced trading on 22 February 2010
• Traded in $US per tonne (Molybdenum: $US per tonne of molybdenum contained)
• Daily prompts to 3 months, weekly to 6 months, monthly to 15 months 
• Trading via Ring, LMEselect and Telephone
• 1 Ring per day shared between cobalt and molybdenum at 12:20
• Kerb trading daily
• Physically settled
• Delivery points in Rotterdam, Baltimore, Singapore and Antwerp (LME Cobalt only)
• Tick size:
  • Carries: $0.01 in LMEselect, Ring, and Telephone
  • 3 months: $0.25 - LMEselect; $0.50 - Ring; $0.01 - Telephone
• Options, TAPOS, LMEmini or SWAPS contracts will not be extended to molybdenum and cobalt at the launch

Margin Information

Margin rates are set by LCH.Clearnet who clear all contracts traded on the Exchange.

• Scanning Range (per tonne):
  • Cobalt - $5400
  • Molybdenum - $6600
• Intermonth Spreads:
  • Cobalt - $10,800
  • Molybdenum - $13,200
• Intercommodity Credits:
  • Cobalt to Nickel – 25%, Ratio 6:1
  • Molybdenum to Copper – 25%, Ratio 25:6

LME Cobalt Physical Specification (CO)

• Lot size: 1 tonne of minimum 99.3% cobalt
• Deliverable in cathodes (broken or cut), ingots, briquettes or rounds in 100kg - 500kg drums of uniform size and weight
• Delivery by brand
• Impurities set according to standard producer specification

LME Molybdenum Physical Specification (MO)

• Lot size of 6 tonnes of molybdenum delivered in 10 tonnes of roasted molybdenum concentrates (RMC)
• Permissible variance of 5% of the 6 tonne lot size or between 57 to 63 percent, or 5,700-6,300 kilograms (kg)
• Deliverable in 200 or 250kg drums
• Impurity levels:
  • Copper (0.50%)
  • Sulphur (0.10%)
  • Carbon (0.10%)
  • Phosphorous (0.05%)
  • Lead (0.05%)

The product is delivered in drums of RMC. Of each drum delivered and stored in warehouse, only around 60 percent of the drum, or 6 tonnes, has any value, which is the molybdenum contained in the RMC. LME warehouse stocks will report only the molybdenum content of the material in storage. Rent will be payable on the entire RMC in storage. 

Law / Regulation

This is a summary of the contract specifications. For full contract specification details, please refer to the LME Rulebook which details the complete rules and regulations of LME contracts.

LME contracts may only be offered or sold to United States foreign futures and options customers by firms registered with the Commodity Futures Trading Commission (CFTC), or firms who are permitted to solicit and accept money from foreign futures and options customers from trading on the LME pursuant to CFTC Rule 30.10.

Arbitration

In the case of unresolved disputes, arbitration is effected via the LME arbitration procedure, and/ or by other body agreed by the parties.

Minor metals contract specifications

Minor metals guidance notes