Skip navigation

LME to delist plastics contract

20 October 2010

The London Metal Exchange (LME) announces that it will delist its plastics contracts and that the last prompt date for all existing contracts will be Friday 29th April 2011. The formal decision to delist was taken by the Board of the London Metal Exchange following a recommendation by the Executive Committee. This announcement follows the establishment of delisting procedures.

The Exchange has decided that the costs of withdrawing outstanding warrants from the LMEsword depository will be waived. Current open interest for all plastics contracts is 228 lots, out to March 2011.

Plastics futures trading was introduced on the LME on 27th May 2005. Despite a number of changes to the contracts and the subsequent launch of regional contracts no significant volume or open interest has been established and the exchange believes that this position is unlikely to change in the foreseeable future. It has therefore decided to focus its efforts and resources on other opportunities.

LME Chief Executive Martin Abbott commented, “The Exchange and its committee members have put considerable effort into this endeavour to bring transparency and hedging facilities to the plastic business. But we must now recognise that these efforts have not attracted sufficient volume business and the time has come to bring this activity to a close.”

~Ends~

Contact details

For further information or to speak to an LME spokesperson, please contact:

Miriam Heywood
+44 (0)207 264 5538
miriam.heywood@lme.com  

Kathy Alys
+44 (0)207 423 5803
kathy.alys@lme.com

About the London Metal Exchange

The London Metal Exchange, a member of HKEx Group, is the world centre for industrial metals trading.

More than 80% of global non-ferrous metals business is conducted on our three trading platforms: LMEselect (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures, options, and our latest contract, LMEswaps, to hedge against adverse price movements – prices which are discovered on our markets and used as the global reference.

Participants can trade aluminium, copper, tin, nickel, zinc, lead, molybdenum, cobalt, steel billet and two regional aluminium alloy contracts. In 2013, 171.1 million lots were traded on the LME, the equivalent of 4.0 billion tonnes and $14.6 trillion in notional value.

At the close of the year, 7.4 million tonnes of material was held on LME warrant in 732 storage facilities across 37 locations internationally.