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The LME is primarily a financial, rather than a physical market, where trading is used to manage risks rather than secure metal. Less than 1 percent of contracts traded on the LME result in physical delivery, so the chances of being stuck with metal you cannot use are very low. In the unlikely event that a contract goes to physical settlement, lots can be swapped or sold at a premium or discount to the LME price. The cobalt industry is already used to this way of doing business, as it already trades metal at a premium or discount to the Metal Bulletin cobalt price.
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