Linear Low Density Polyethylene Contract Specification

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, Gwangyang and Port of Tanjung Pelepas (PTP) (Asia).

Plastics Warrants (PWs) will be held in the LMEsword system as LL Warrants. All LL Warrants will be deliverable against the LL global contract.

North American Linear Low Density Polyethylene (LN)

Contract Size: Standard delivery 24.75 tonnes per contract lot.

Delivery points: LME approved warehouses in Houston, Baton Rouge and Mobile ( North America ).

Plastics Warrants (PWs) will be held in the LMEsword system as LL Warrants. Only Warrants for LLDPE held in North America will be deliverable against the LN contract.

European Linear Low Density Polyethylene (LE)

Contract Size: Standard delivery 24.75 tonnes per contract lot.

Delivery points: LME approved warehouses in Antwerp and Rotterdam ( Europe ).

Plastics Warrants (PWs) will be held in the LMEsword system as LL Warrants. Only Warrants for LLDPE held in Europe will be deliverable against the LE contract.

Asian Linear Low Density Polyethylene (LA)

Contract Size: Standard delivery 24.75 tonnes per contract lot.

Delivery points: LME approved warehouses in Singapore, Gwangyang and Port of Tanjung Pelepas (PTP) ( Asia ).

Plastics Warrants (PWs) will be held in the LMEsword system as LL Warrants. Only Warrants for material held in Asia will be deliverable against the LA contract.

Trading Features

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, in LME approved Warehouse, 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
LMEselect	$0.25	$0.01
Inter-office	$0.01	$0.01

Clearing and Margining

All Contracts are cleared and margined by LCH.Clearnet.

Prompt Dates

LMEselect Linear Low Density Polyethelyne Contract Codes

Delivery features

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

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.