Molyebdenum now traded on LME

The London Metal Exchange, the world’s biggest metals market, began trading today in cobalt and molybdenum, commodities used in everything from jet engines to stainless steel.

The 133-year-old exchange offered futures on the metals on its floor starting at 12:20 p.m. local time. Codelco, the world’s second-largest molybdenum producer, wants to support the molybdenum contract, according to Gonzalo Cuadra, a Codelco managing director.

The LME is expanding into so-called minor metals as it opens a first overseas office in Singapore and proposes a venture with the London-based Baltic Exchange to bring trading of freight derivatives onto a new exchange. The bourse handled $7.41 trillion of contracts last year, including 49.7 million in aluminum, 26.5 million in copper and about 30,000 in Mediterranean steel billet.

One of the key uses of molybdenum is to increase corrosion resistance of stainless steel and special alloys typically 316,317L, 254SMO, 654SMO and duplex stainless steels. The new feature will allow users to have better visibility of prices. In order to make this easier for stainless steel users BS Stainless have added the daily closing price to their web site here