London 07/01/2016 - Three-month cobalt and molybdenum both traded on the LME today, with the business on Select the first trades registered on the platform since autumn 2015 amid the rout in global equities and significant losses in other base metals.
In cobalt, two lots traded at $23,300 per tonne, which is equivalent to $10.55 per pound - the last time the metal traded on Select was in August 2015. Molybdenum business was at $11,800 per tonne or $5.35 per pound - the first trade since September 2015.
"They don't trade much - but while other markets are taking a pounding these are holding the line as there really is not a day-to-day link to big events," a trader said.
"Cobalt is gently going the other way, actually," another trader said.
The LME's more active non-ferrous metals have been pummelled as a result of the rout in global equities and oil, triggered by the Chinese stock market's fall this week. Copper and zinc at one stage were at their lowest since June 2009.
But cobalt and molybdenum on the free market have gravitated away from recent multi-year lows slightly - 99.30 percent cobalt was quoted at $9.80/10.40 per pound while molybdenum was at $5.00/5.20 per pound. At their lows in December 2015, cobalt was at its weakest for seven years while molybdenum hit its softest since 2001.
The LME business is unlikely to signal a sea change in fortunes for the exchange's contracts, which have been slow performers since they were launched in February 2010.
Cobalt open interest is 238 one-tonne lots, while warehouse inventories stand at 656 tonnes, their highest ever - metal is freely available on the free market and can be turned into cash by selling on the LME.
Molybdenum open interest is just 14 six-tonne lots, with inventories at 120 tonnes. Open interest has never been particularly large - even in mid-2010, when the market was developing, levels were in the mid-30s
The lifetime peak for the LME cobalt contract was set in April 2010 at $47,300 while molybdenum's high in March 2010 was $41,990.
(Editing by Mark Shaw)