Istanbul, 28 April 2009 - The introduction of cobalt and molybdenum on the LME (London Metal Exchange), originally slated for the second half of this year, now seems more likely early in 2010, LME CEO Martin Abbott said on Tuesday.
"The second half (of 2009) - that is somewhat hopeful...it is looking more likely that we will launch in the first quarter of next year," he said in a presentation at the MMTA’s Minor Metals Conference, organised by Metal Events, here.
He said that the LME was actually ready to go with contracts in line with its original schedule, but was dependent on clearing systems, which are provided by LCH.Clearnet who clear LME business, being in place.
"They (LCH.Clearnet) are replacing the platform on which we do all our clearing," he added.
LCH.Clearnet is upgrading its clearing platform, known as Synapse, but the introduction of this has been delayed. The updated version has been put back repeatedly - it was set for June 8 of this year and may not be ready until October now.
The LME, meanwhile, is progressing with the ‘nuts and bolts’ of the contracts - warehousing and brand listings - the metal that will be deliverable into stores against the contracts.
"Rotterdam, Baltimore and Singapore are proposed locations...we are looking at the possibility of at least one other," Abbott said.
He declined to specify the fourth location, but that it had become obvious that this particular area was suitable.
Brand listing - for cobalt of 99.30 percent minimum and molybdenum oxide, basis 60 percent molybdenum - is well underway.
"We will start the process of listing brands over the next months. It (initially) will not be exhaustive, but it will be possible to add after launch," he added.
MOL Price at posting:
53.5¢ Sentiment: Buy Disclosure: Held
