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Ann: Appointment of Metals Trading and Marketing Specialist, page-205

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beisha

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11/06/19

16:29

Post #: 39004631
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Originally posted by Mutley8: ↑

Here mate this article will help explain why LME has lost credibility as such moved to introduce LME Fastmarkets the benchmark for ethical sourcing. Hence the introduction of the Fastmarkets link.

Basically the LME is easily manipulated as can be seen by the example trading day highlighted below in yellow. Also LME is an avenue for selling unethically sourced or “dirty” cobalt amongst the clean stuff. They are having trouble establishing procedures etc to verify clean sources that end users like Apple Tesla want.

The LME have delayed the transition but “appear” to still want to make the move to verifying ethical sourcing although miles away and little motivation it seems. Something like Brexit you might say!

WFE is clearly in the clean ethically sourced category with Kumi on board and last time I spoke with JB he referenced LME Fastmarkets specifically during the conversation, which makes sense considering we are using Kumi. So I believe that’s the one that matters for WFE.

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https://www.fastmarkets.com/article/3870284/lme-no-longer-fast-tracking-cobalt-for-responsible-sourcing-standards
LME no longer fast-tracking cobalt for responsible sourcing standards

The London Metal Exchange has abandoned a planned accelerated timeline for its cobalt contract to meet new responsible sourcing principles, chief executive officer Matthew Chamberlain said on Tuesday April 23.

Better aligned to PRAs
On March 11, the LME launched a new cash-settled cobalt contract settled against the benchmark standard-grade cobalt price assessed by Fastmarkets.

Chamberlain said he believes the push for LME-listed brands to be standardized means its existing physically-delivered cobalt contract, which was launched in February 2010, could become more aligned to the new cash-settled contract.

“When we launched the cash-settled contract, we recognized the market uses different prices and obviously these have a different set of brands. I think having the two prices on the LME at the moment is the right thing to do,” Chamberlain said.

“But I do think the responsible sourcing guidelines means that there is the possibility that there may not be as much differential between the two prices. They will be more aligned,” he added.

Fastmarkets’ price assessment for standard-grade cobalt– the benchmark used across the physical supply chain – stands at $15.60-16.75 per lb, as of April 17, down from $26.50-28 per lb at the beginning of the year.

The LME’s physically-settled cobalt contract last settled at $34,500-35,500 per tonne ($15.65-16.10 per lb) on April 18.

Over the past year, however, there have been instances of a pronounced difference between the PRA and exchange price.

The LME contract settled at $45,000-45,500 per tonne on November 2 last year, for example, down from the previous day’s settlement of $59,000-59,500 per tonne, with one lot (1 tonne) trading. At the same time, the Fastmarkets price was unchanged at $33.50-34.45 per lb ($73,855-75,950 per tonne).

Expand

Very interesting woof woof, it just got established this year and their classification assessment has changed ie low grade > standard grade.......high grade to alloy grade.

So can one assume going forward that coys that support LME , support grubby practices, therefore will be exposed and shamed down accordingly , thus leaving LME fast market as the real; alternative?

Makes sense to me, the timing of this new market is very interesting, almost co incidental to when WFE announced its relationship with Kumi......hmmmm.

Great stuff dude!

WFE Price at posting: 2.4¢ Sentiment: Hold Disclosure: Held
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