What are cobalt futures?

In late 2020, CME Group launched cash-settled Cobalt futures on its COMEX exchange. The Cobalt Metal (Fastmarkets) futures contract was CME Group’s first foray in the world of battery metals. Six months since officially launching, Cobalt futures trading has found widespread adoption across the supply chain.

What's going on with CME's cobalt futures?

LONDON, Dec 1 (Reuters) - Activity in 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.

What will drive the cobalt market?

Demand for lithium-ion batteries, which require cobalt, is escalating, and analysts expect that this sector will drive the cobalt market going forward. At the same time, cobalt supply could tighten substantially due to human rights abuses in the Democratic Republic of Congo (DRC), where most cobalt is produced.

What is the Comex cobalt contract?

The COMEX Cobalt contract is a cash-settled futures contract based on an industry reference price ‒ namely the Fastmarkets assessment for cobalt metal, standard grade, price basis in-warehouse Rotterdam. In the physical market, this assessment is widely used for floating price indexation in term contracts.