Cash-settled cobalt future contracts.

There is continuing uncertainty in the cobalt market: Companies are researching various competing battery technologies while some market participants are stockpiling or signing multi-year cobalt contracts to secure supply. The growing size of the cobalt market, alongside volatility in prices, underscores the need for and value of a hedging mechanism, Fastmarkets said.CME Group will offer this hedging mechanism settled against the following Fastmarkets price: cobalt standard grade, in-whs Rotterdam, $/lb. The contract is scheduled to trade under the Bloomberg ticker MB071071 from December 14, pending regulatory review.The final settlement price will be an arithmetic average of the daily Fastmarkets standard-grade cobalt (midpoint) price.The launch of the contract builds on growing participation in OTC trades, which are cash-settled against Fastmarkets’ cobalt price assessments. Key market participants have endorsed the exchange’s partnership with Fastmarkets as a critical step in the evolution of risk management solutions for the cobalt market, the analytics firm said. QUOTE.
Market is building as demand impact grows IMO.

https://www.mining.com/fastmarkets-cme-to-launch-cash-settled-cobalt-futures-contract/