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Global Linear Low Density Polyethylene (LL)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Linear low density polyethylene butene copolymer general purpose blown film and blending grade.
Melt flow rate 0.8. |
0.8 (-0.1/+0.4) |
All Locations: Asia , Europe , North America |
Contract Size: Standard delivery 24.75 tonnes per contract lot.
Delivery points: LME approved warehouses in Houston , Baton Rouge and Mobile ( North America ), Antwerp and Rotterdam ( Europe ) and Singapore, Gwang Yang and Port of Tejung Pelapas (PTP), Malaysia ( Asia ) as at April 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as LL PWs. All LL PWs will be deliverable against the LL global contract.
North American Linear Low Density Polyethylene (LN)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Linear low density polyethylene butene copolymer general purpose blown film and blending grade.
Melt flow rate 0.8. |
0.8 (-0.1/+0.4) |
North America |
Contract Size: Standard delivery 24.75 tonnes per contract lot.
Delivery points: LME approved warehouses in Houston , Baton Rouge and Mobile ( North America ) as at June 2007.
Plastics Warrants (PWs) will be held in the LME's SWORD system as LL PWs. Only Warrants for material held in North America will be deliverable against the LN contract.
European Linear Low Density Polyethylene (LE)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Linear low density polyethylene butene copolymer general purpose blown film and blending grade.
Melt flow rate 0.8. |
0.8 (-0.1/+0.4) |
Europe |
Contract Size: Standard delivery 24.75 tonnes per contract lot.
Delivery points: LME approved warehouses in Antwerp and Rotterdam ( Europe ) as at April 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as LL PWs. Only Warrants for material held in Europe will be deliverable against the LE contract.
Asian Linear Low Density Polyethylene (LA)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Linear low density polyethylene butene copolymer general purpose blown film and blending grade.
Melt flow rate 0.8. |
0.8 (-0.1/+0.4) |
Asia |
Contract Size: Standard delivery 24.75 tonnes per contract lot.
Delivery points: LME approved warehouses in Singapore, Gwang Yang and Port of Tejung Pelapas (PTP), Malaysia ( Asia ) as at April 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as LL PWs. Only Warrants for material held in Asia will be deliverable against the LA contract.
Trading Features
Contract Series
Daily
Daily contracts on a rolling basis out to 3 months forward. Cash is for settlement in 2 days time. TOM (or Cash Today) is for settlement in 1 days time also on a rolling basis. TOM trading ends at 1230 (London time) on the day before the settlement day.
Weekly
Weekly Wednesday contracts from the 3 month date out to 6 months forward.
Monthly
Monthly Third Wednesday contracts from 7 months out to 15 months forward.
Contract Type
Futures contracts. No Options or TAPOs (Traded Average Price Options) are currently available.
Settlement by making or taking delivery of physical material of an LME approved brand into/out of an LME approved warehouse by Plastics Warrant (PW).
Positions may be closed out before settlement.
Pricing Basis
Pricing basis of the LME deliverable product will be in warehouse, duty unpaid, in LME approved Fiscal Warehousing (Europe) / Free Trade Zone (Asia and US), with choice of brand and location at the seller’s option (refer to regional contracts for regional-specific brands and locations outlined under ‘contract features’).
Currency
Major trading currency is US dollars. Once traded, contracts can be cleared and settled in US dollars, Japanese yen, euro and pounds sterling.
Minimum Price Movement (Per Tonne)
|
|
Outright |
Carries |
|
Ring |
$0.50 |
$0.01 |
|
LME Select |
$0.25 |
$0.01 |
|
Inter-office |
$0.01 |
$0.01 |
Clearing and Margining
All Contracts are cleared and margined by LCH.Clearnet.
Prompt Dates
Prices are quoted on LME futures contracts for all US and UK business days out to 3 months. This enables trade users to hedge their exposure to a precise date. The delivery or settlement day of an LME futures contract is known as its Prompt Date. The settlement price for each prompt date is established two business days before the prompt date. For example, a future with a prompt date of 23 June will have its settlement price established at the end of the 1220 ring of 21 June. It will be the official Cash price on 21 June.
LME Select Contract Codes
LLD Global Linear Low Density Polyethylene (US dollars)
LND North American Linear Low Density Polyethylene (US dollars)
LED European Linear Low Density Polyethylene (US dollars)
LAD Asian Linear Low Density Polyethylene (US dollars)
Delivery Features
Delivery
The LME has set standard procedures and standardised documentation for deliveries as outlined in the LME Rulebook. Delivery is by electronic transfer of Plastics Warrants (PWs) from seller to buyer using the LME’s SWORD system on the Settlement day. The seller has the choice of LME approved brand and LME approved delivery location for physical delivery.
Contract Size
Standard delivery is 24.75 tonnes per contract lot (weight tolerance of +/-0.8%).
Packaging of Deliverable Material
Delivery of physical material in pellet form in 55lb/25kg bags, palletised (shrink/stretch wrapped and covered with a plastic hood) with 55 bags per pallet. Each pallet detailed in each PW and shall consist of only one LME approved brand.
Plastics Warrants
Each PW is a bearer document of title representing a specified parcel of physical product in 25kg bags (55lbs in USA) in LME approved warehouses in LME approved delivery locations. Once the warehouse is satisfied with the documentation and visual inspection of the bagged, palletised (shrink/stretch wrapped and covered with a plastics hood) product, it will instruct its London Agent to create the relevant PWs using the LME’s SWORD system. Parameters have been set for deliverable material so that plastic delivered into LME approved warehouses more than eleven calendar months after the month of production cannot be placed on a PW. The seller has the choice of which PWs to deliver but must ensure that the appropriate PWs for the relevant contract are available to deliver by the deadline.
Regional Contract Delivery and PWs
Plastics Warrants exist as PP or LL warrants. The location where the material is stored determines which contracts the warrant can be delivered against.
Any PP warrant can be delivered against the global PP contract and any LL warrant against the global LL contract. Only warrants for material located in the region in question can be delivered against a regional contract. For example, only a PW for PP material stored on warrant in a warehouse in North America can be delivered against the North American PP (the PN) contract.
Other Features
Arbitration
In the case of unresolved disputes, arbitration is effected via the LME arbitration procedure, and/ or by other body agreed by the parties.
Law/Regulation
English Law, with regulation by the LME and the Financial Services Authority (FSA).
Refer to the LME Rulebook for full rules and regulations of LME plastics contracts.
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