LME Announces Additional Grades For The Polypropylene (PP) Plastics Contract

The London Metal Exchange (LME) has today confirmed that, in advance of the launch of plastics futures contracts on 27 May, it has introduced two new deliverable grades to the polypropylene (PP) contract specification.

In addition to the MFR 12 general purpose injection moulding grade, the LME has added the following additional grades for PP:

• MFR 3.4 (+/- 0.5) ‘raffia’, or fibre extrusion grade, delivered ‘barefoot’ with no additives. This grade will only be deliverable against the LME contract in the Singapore / Johor PTP location
• MFR 20 (+/- 3) general purpose injection moulding grade, delivered ‘barefoot’ with no additives. This grade will only be deliverable against the LME contract in the Houston, USA location

Both additional grades will be deliverable without premium or discount to the MFR 12 grade.

In Europe (Antwerp / Rotterdam area), only the MFR 12 grade will be deliverable.

Commenting on the announcement, LME Director of Strategy, Neil Banks said: “The introduction of new grades for polypropylene takes account of regional variations in the way the product is transported, stored and used around the world. This is the result of detailed consultation with industry, via the LME Plastics Committee, and will help to improve the liquidity of the contract on launch.”