|
With a modified A380.1 specification, this new aluminium alloy contract, has been designed following intensive discussions with all segments of the North American secondary aluminium industry. It has a specification that reflects the production and consumption of aluminium alloy in the US and is restricted to delivery points within the region.
The use of aluminium alloy, particularly for the production of lightweight engine parts, has been steadily growing internationally over recent years. There is every indication that this growth will continue in the foreseeable future. For this reason the LME introduced an aluminium alloy contract in 1992 for futures and traded options and traded average price contracts (TAPOs) were added in October 2000. However, the main consumers, auto manufacturers, use different grades of alloy in different regions of the world. While the LME contract was being traded for customers in Europe and the Far East it was evident that it was not gaining acceptance in North America. For this reason, the LME entered talks with secondary smelters, scrap dealers, consumers, traders and merchants in the US to develop the LME's first ever regional contract.
|
