The London Metal Exchange (LME) has partnered up with price reporting agency FastMarkets in order to introduce their new lithium futures contract. It will be established under the name LME Lithium Hydroxide CIF (FastMarkets MB).
This move by the oldest and largest metal exchange in the world, owned by Hong Kong Exchanges and Clearing Ltd., follows USA based CME group’s lithium future contract launched on May 3, 2021. It has set up a rivalry between the two metal exchanges as they seek to capitalize on the surge in demand for electric vehicle components. The contract serves to allow key stakeholders like electric car companies to hedge against future price volatility.
The pricing procedure will be based on the reported monthly average of Fastmarkets’ lithium hydroxide monohydrate...
