London Metal Exchange Confirms Launch Of Plastics Contracts

The London Metal Exchange has set out its plans for further development of proposed contracts in plastics futures. The LME has today confirmed that it will launch futures contracts for both Polypropylene and Linear Low Density Polyethylene by the end of 2004.

This decision has been made as a result of market demand and in-depth consultation with the plastics industry, in particular producers and consumers of these products and the membership of The London Metal Exchange.

Commenting on this major development, Simon Heale, LME Chief Executive said, “As a result of lengthy consultation, concentrated study and subsequent dialogue with industry, I am pleased to announce that the LME will launch futures contracts for Polypropylene and Linear Low Density Polyethylene by the end of 2004. The LME has a wealth of experience in providing risk management services to the industrial world and is well positioned to extend these services to the plastics industry.

I am confident that the plastics industry will find value in this major achievement of providing a credible price risk mechanism for managing price volatility within the plastics supply chain.”