News item
25 Feb 10
Banks are also Customers
For this reason it should be hoped that, for the future, economic ministries work with greater incentives and increased activity. In March the first professional convention under the title of “Urban Mining” takes place. Even if this convention is still a relatively small one, the interest behind it for what development may mean for the future, will surely be great. The next episode in this discussion is keenly awaited.
As planned the trade in both cobalt and molybdenum futures began on the 22nd February 2010 on the LME. As was also expected trading activity in the first few days was slight. Traders must first gain confidence and trust in this market and collect experience in how it functions. Up to now the main reference to the molybdenum price now trading on the LME, had been the weekly publication in Platt’s Metals Week. After a large discrepancy at the start of trading between the spot quotes published in Metal Bulletin and Platt’s Metals Week, and those of the molybdenum contract on the LME, the differences started to diminish as the trading days continued. All in all, in the last few weeks before introduction to the LME, the interest in the metal was climbing rapidly. Molybdenum is now trading around an average of USD 39,000.00/mt on the LME. It should be expected that when it is more established and has enough liquidity in this market place, then contractual pricing will increase, based on the LME quotations. The start of this, however, is still too early to predict. The accredited broker houses on the LME are in two minds. Some LME traders are watching the development from a distance, while many others are already in a position to conclude molybdenum contracts.