The LME provides the global plastics industry with:
- an effective and transparent pricing mechanism;
- a means of offsetting the adverse effects of price volatility by hedging via the Exchange; and therefore
- the ability to focus on the important matters of continuous innovation and predicting profitability.
Liquidity in the contracts continues to grow steadily and the Exchange looks forward to further volume growth.
Click here to visit the 1st anniversary section of the LME website where you can download free historical plastics market data and view the first anniversary plastics presentation.
On the anniversary of the launch of its plastics futures contracts, The London Metal Exchange (LME) has announced a number of enhancements to the contracts. These include the extension of the material shelf-life and the introduction of additional prompt dates to supplement the current single monthly prompt date system.
Shelf-Life Extension
Effective from 3 July 2006, the time period that PP and LL Plastics Warrants will remain deliverable against an LME contract will be extended from 10 months to 36 months from production. The Exchange will explore the feasibility of introducing a discounting process for product delivered towards the end of its shelf-life. Existing Warrants will be "grandfathered" into the new extended shelf-life period.
Additional Prompt Dates
The change to the prompt date system will mean that, at all times, trading will be possible for settlement in two working days time (Cash), and in addition, trading for the next business day (Cash Today or TOM short) will be allowed. Trading will also be possible for settlement on the first five calendar Wednesdays, inclusive of Third Wednesdays.
Click here to view the answers to frequently asked questions about the enhancements to the plastics contracts.
For full details of the enhancements and to sign up for the LME's plastics community, visit the "plastics enhancements" section of lme.com
