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Metal Recycling News June 14, 2019 09:30:52 AM

LME Partners with Fastmarkets in Offering Pricing Solution for New Lithium Contract

Paul Ploumis
ScrapMonster Author
The partnership will now focus on promoting the industry’s transition towards reference pricing.

LME Partners with Fastmarkets in Offering Pricing Solution for New Lithium Contract

SEATTLE (Scrap Monster): In a surprise move, the London Metal Exchange has partnered with London-based price reporting agency Fastmarkets to provide pricing solutions for its lithium contract, which it plans to launch soon. It must be noted that LME already uses Fastmarkets to price three of its existing contracts including cobalt. The choice of Fastmarkets was obvious, mainly on account of its wide use across the industry and also due to its leading pricing capabilities, LME noted.

The LME had invited proposals from several leading price reporting agencies during the previous year. The agencies had delivered presentations to the LME’s EV Metals Advisory Group. This was followed by extensive market discussion, which led to the final selection of Fastmarkets, sources said.

ALSO READ: Introduction of Code of Conduct for the LME and LME-Branded Events

The partnership will now focus on promoting the industry’s transition towards reference pricing. As part of this, the Fastmarkets lithium prices will be made available through LME website, for free. The exact time of launch of the lithium contract will be announced after extensive discussions with Advisory Group and other industry participants.

Announcing the decision, Robin Martin, head of market development, LME noted that the exchange is delighted to announce next major step in its effort to develop effective lithium price-risk management tool. The lithium market has witnessed unprecedented price volatility in recent years, mainly driven by heightened demand for EV batteries, he added.

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