A message from our CEO, Raju Daswani, about our lithium partnership with the LME
Published: Tuesday, 11 June 2019
Fastmarkets has been pricing lithium for more than 30 years and other metals, mining and forest product markets for over 100 years.
We are delighted to have been selected by the LME as its
partner to develop the pricing benchmarks for the lithium
market. The decision was made following a competitive tender
process that started early in 2018.
We are the provider of industry benchmarks across several
critical commodities including aluminium premiums, cobalt,
ferro-chrome, pulp, lumber and high-grade iron ore. The
experience and in-house expertise of our 400-strong global team
in 14 international offices enables us to serve our markets by
co-operating with the companies that rely on our benchmark
prices around the world and across the entire supply
The lithium industry is going through a period of rapid
evolution and volatility - as the provider of a critical
component in one of the key technologies of the 21st century,
it requires strong and representative price benchmarks to value
trade, contracts, risks and opportunities.
Price reporting agencies (PRAs) that provide price benchmarks
carry a high level of responsibility through ensuring rigour in
their processes as well as an assurance to the markets that
their internal processes and systems comply with their publicly
available and documented methodologies against which the price
discovery process is undertaken.
Fastmarkets aligns all its prices to the highest industry
standards for compliance set out by IOSCO. Our lithium price
has also been subject to a successful external IOSCO audit
carried out by PwC.
We respect and value the essential role played by all PRAs
in contributing transparency to markets that would otherwise be
opaque. The transparency that PRAs provide allows markets to
operate efficiently through providing counter parties with a
benchmark-based pricing mechanism that facilitates long-term
To provide this transparency in a robust and auditable way, we
have invested in state-of-the-art pricing systems, legal and
compliance infrastructure and new products that ensure the
reliable and rapid dissemination of representative market data
for the markets we serve.
When we tendered to partner with the LME to develop a financial
benchmark alongside our physical benchmark for lithium, it was
a fair, sound and competitive process involving several other
We welcomed the opportunity to showcase our capabilities
through the process with the LME. This involved close analysis
of our people, systems and processes over what was an almost
We are proud that the LME selected Fastmarkets as its partner
based on the feedback it heard and the involvement of the major
participants across the global lithium supply chain.
We will continue to work hard with companies in this critical
global market to supply the robust benchmarks that they