London Metal Exchange -LME

The London Metal Exchange has been the main non-ferric metals market for more than 130 years. It offers a range of futures and options for not-ferric metals, steel and plastics. It provides a transparent platform for trading these products and as a result it facilitates the definition of spot prices and futures.

All this means a planning tool for end buyers and producers, in a dynamic world frequently affected by severe changes in price. The resulting liquidity means that the prices on the London Metal Exchange are globally recognized and respected by the industry. In 2009 transactions totaled US$ 7410 billion, averaging US$ 29 billion a day.

The organizations authorized to operate on the LME are brokers registered on the exchange, which are divided into different categories. The brokers provide the industry with physical access to the market, to risk management and to product dispatch and delivery mechanisms.
In February 2010 the London Metal Exchange, continuing its strategy of product growth and diversification, launched Minor Metals contracts, including Molybdenum and Cobalt.

Considering the opportunities provided by the market, and the role of Molymet in the industry, the company registered the brands Molymet, Molymex and Sadaci. This allowed the products from these plants to be accepted for trading on the Exchange. At the same time, the Molymet Group permanently participates in the Minor Metals Committee.

Though the LME is a market of last resort in terms of the physical product, the existence of the contract on molybdenum in general and the participation in the LME operations in particular represents a relevant opportunity as a source of liquidity. The LME also provides alternatives for price risk management though futures contracts, options and other derivative contracts.