Speaking at the annual LME dinner in London the chairman, John Pizzey said: "There is another area where the LME has been active. In the last few months the executive has been investigating the world of polyolefins. At first sight this might seem odd. However, the more we have looked, the more akin plastics are to some of our current contracts. There is significant volatility, and a growing desire for risk management tools from both producers and consumers. It seems to fit a deliverable contract. Contracts for polypropylene and linear low-density polyethylene could be launched in the first half of next year, subject to our resolving a few outstanding issues."
The LME is launching a website - www.lmeplastics.com - as part of its drive in the next few months to develop further its contacts with industry.
In addition the LME will hold a further and broader series of intensive discussions with producers and consumers to refine its ideas. Simon Heale, chief executive of the LME said: "We have been greatly encouraged by the positive response to the LME in this work, and believe that working together we can achieve a great deal. We are already very close, with industry guidance, to finalising workable contract specifications. We are all looking forward to an even closer association with producers and consumers now that we have reached this point." Decisions about whether to move to launch contracts will be taken in the light of these discussions.
