In commodity market terminology, cobalt is a strategic ferromagnetic metal associated with silver, lead, copper and nickel that is similar to iron and nickel in appearance. Its primary use is in the manufacture of magnetic and high temperature alloys. It is also used to make blue pigment for ceramics.
Cobalt futures began trading on the London Metals Exchange (LME) on February 22nd, 2010 in a one metric ton lot size with a purity level of 99.3%. The futures are deliverable in 100 - 500 Kg drums of uniform size and weight. The contracts are for physical settlement and are quoted in U.S. Dollars per metric ton. Futures contracts for Cobalt are for 15 months forward and are traded by open outcry and also electronically.