#CME #Cobalt contract use soars above #LME as big players join
LONDON, Dec 1 (Reuters) – Activity in Chicago based CME Group’s cobalt futures has this year soared far above London Metal Exchange volumes, with sources citing major firms including top producer Glencore as users covering their exposure to the battery metal.
Consumers, producers, commodity traders, brokers and banks are backing the CME’s cash-settled contract as they want a liquid instrument to hedge cobalt, which has grown in importance due to its use in electric-vehicle batteries, which are crucial for meeting targets for cutting emissions.
Growing volumes for CME cobalt are expected to help the U.S. exchange win market share in contracts for other materials used in electric vehicles such as lithium and aluminium.
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