The London Metal Exchange (LME) has today announced a programme of free international hedging workshops for the plastics industry, to support the introduction of regional contracts and additional prompt dates to its plastics futures contracts on 25 June 2007.

The free half-day workshops will help the plastics industry to understand how hedging can help organisations to better manage their polymer price risk, and therefore, better predict costs and profits. In addition, they will explore the benefits of regional contracts and additional prompt dates, and their implications, on trading.

Initial dates and locations are as follows:

• London - 30 May, 26 June, 10 September, 3 October and 27 November 2007
• Rotterdam - 17 July 2007
• Madrid – 12 June 2007
• Milan – 13 September 2007
• Paris – 6 June 2007
• New York – 10 July 2007

Sponsored Industry Events

In addition to the programme of free workshops, the Exchange is also participating in a number of plastics industry conferences and providing half-day hedging workshops alongside these events. These include:

ICIS Events:

• 3rd Asian Polymers Conference – Shanghai – 16-17 April 2007
• 4th World Olefins Conference – Antwerp – 22-23 May 2007
• 25th Annual Petrochemicals Conference – Houston – 17-18 October 2007

K2007

The LME will be offering two half-day hedging workshops to attendees of the K2007 exhibition, which runs from 24th – 31st October 2007 in Düsseldorf, Germany. Hedging workshops will be hosted on the afternoons of 26th and 30th October.

Commenting on the programme of events, Neil Banks, Director of Exchange Development, said:

“These important events will help those at all stages of the plastics industry supply chain to understand the benefits of managing price risk through the LME, and the mechanics of hedging.

“With the introduction of new regional contracts, and therefore regional pricing, for Asia, Europe and North America, this programme of events offers a perfect opportunity for those in the industry to learn how the new regional contracts will work for them.”

For further details on the LME’s programme of plastics hedging workshops, including details of how to book, please visit www.lme.com/plastics07.asp.

Notes for Editors

1. The LME commenced trading in plastics futures contracts on 27 May 2005.
2. Since its launch the PP contract has traded around 750,000 tonnes of material and the LL contract around 665,000 tonnes. That equates to a monetary value of approximately $750 million and $665 million respectively.
3. 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
4. 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.
5. 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.
6. 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.

Press enquiries to:       Adam Robinson: +44 207 264 5532