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At each event the Exchange will deliver a session outlining further details of the contract changes being introduced on 25 June 2007. In addition, each event will include an LME pricing review and analysis presentation, plus a half-day hedging workshop on plastics futures trading, both delivered by an LME member firm.
The half-day workshops will help the plastics industry to understand how hedging in LME plastics can help organisations to better manage and predict their polymer price risk, and therefore to plan more confidently and focus their investment more effectively.
Details of the LME’s participation at each event are as follows:
3rd Asian Polymers Conference – Shanghai – 16-17 April 2007
- Presentation on LME plastics from Neil Banks, LME Director Exchange Development
- LME Pricing Analysis and Forecast – Sebastian Castelli, Société Générale
- LME Plastics Hedging Workshop – Brian Woodbridge, Sempra Metals Ltd
4th World Olefins Conference – Antwerp – 22-23 May 2007
- Presentation on LME plastics from Neil Banks, LME Director Exchange Development
- LME Pricing Analysis and Forecast – Sebastian Castelli, Société Générale
- LME Plastics Hedging Workshop – Brian Woodbridge, Sempra Metals Ltd
- Presentation on LME plastics from Neil Banks, LME Director Exchange Development
- LME Pricing Analysis and Forecast – David Paul, Barclays Capital
- LME Plastics Hedging Workshop – James Andrews, Marex Financial Ltd
Commenting on the announcement, Neil Banks, Director of Exchange Development, said:
“Ongoing dialogue and education with the plastics industry is vital in ensuring there is full understanding of the changes being introduced, and the benefits they will bring to the contracts and the industry. Importantly, these events will provide the plastics industry in Asia, Europe and North America with an invaluable opportunity to learn how the new regional contracts will work for them.”
For further details on the LME’s participation at these events, please visit the LME website at
http://www.lme.com/icisevents.aspBackground
- ICIS is a global information provider for the oil and chemicals industry
- The LME commenced trading in plastics futures contracts on 27 May 2005.
- Since its launch the PP contract has traded around 715,000 tonnes of material and the LL contract around 635,000 tonnes. That equates to a monetary value of approximately $715 million and $635 million respectively.
- On 5 February 2007, the LME announced the introduction of additional prompt dates and the introduction of three new regional contracts, deliverable in bags, and one in each region (Asia, Europe and North America) for each of the PP and LL contracts; the creation of six new contracts in total. Both changes are effective from 25 June 2007
- On 3 July 2006, the ‘shelf-life’ for LME plastics contracts was extended to 36 months.
- The LME is the world’s premier non-ferrous metals market and achieved volumes of 87 million lots in 2006, an increase of 10.6% on 2005 figures, and equivalent to $8,100 billion in monetary terms.
- On 4 January 2007 the LME announced its “2 by 2” growth strategy designed to double the volume of its business within the next three to five years.
- The LME launched LMEmini contracts, for Copper Grade A, Primary Aluminium and Special High Grade Zinc on 4 December 2006. The LMEminis are cash-settled monthly contracts, in smaller tonnages than standard LME contracts, and traded electronically, via LME Select, and on the Exchange’s 24 hour telephone market.
