The new contracts, which launch on 22 February 2010, are part of a move to list minor metals on its exchange.
The exchange has listed roasted molybdenum concentrates from Molymet’s Nos roaster in Chile, the Molymex roaster in Mexico and the Sadaci roaster in Belgium.
According to a report by Roskill Information Services Ltd Molybdenum: Market outlook to 2014, the LME’s plan to turn molybdenum into an exchange traded commodity has come with mixed reviews, with many producers and consumers voicing concerns that prices will become more volatile as a result. Others have a more positive outlook.
“We welcome these latest brand listings, which together with those in cobalt show that momentum continues to build in advance of the contracts’ launch date,” said LME new products manager Chris Evans.
The LME says that it is currently evaluating other brand listings for molybdenum and in recent weeks has approved cobalt brands from Vale Inco, Votorantim Metais Niquel, Sumitomo Metal Mining and Jinchuan Group.
The LME contracts for minor metals will reportedly provide transparent pricing and risk management tools for the molybdenum and cobalt industries.