LME Invites Applications For Plastics Producers And Warehouses

The London Metal Exchange (LME) has today released the listing criteria for plastics producers and warehouse companies. Producers are invited to apply to register their brands as tradable types within the plastics contracts and warehouse companies are being given the opportunity to apply for the storage of LME plastics.

The release of the listing criteria is an important step in the run-up to the launch of the futures contracts for plastics on 27 May 2005.

Plastics producers wishing to list their products on the LME will need to meet minimum requirements, including the technical specification of LME Polypropylene (PP) and Linear Low Density Polyethylene (LL) contracts and the design capacity of their production plant. Warehouses must demonstrate a track record for handling plastics for, and on behalf of, plastics producers and meet specific location criteria, amongst other requirements.

Commenting on the release of this information, Neil Banks, LME Director of Strategy said:

“The listing requirements have been developed with valuable input from all sectors of the plastics industry and through its representatives on our Plastics Committee. Clear listing criteria will ensure that all participating companies meet minimum requirements before trading commences, and that their products comply with LME standards.

The publication of this information is an important milestone that takes us closer to the delivery of futures trading in plastics on 27 May 2005.”

A copy of the plastics producer and warehouse company listing criteria is attached to this press release as Appendix A and B. The listing criteria can also be accessed via www.lmeplastics.com.