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Since 15 February 2010 LME plastics prices for polypropylene and linear low density polyethylene are discovered using LMEselect; the Exchange’s electronic trading platform.
Impact of the changes
- The plastics contracts were withdrawn from open outcry trading in the Ring
- Official prices are discovered for Cash, Month 1 and Month 2 on LMEselect for the period 12.20 – 12.25
- The price methodology has changed to a volume-weighted average price, a method widely used by other commodity markets
- Closing Prices are discovered using the fair value method with emphasis on the close at 16.30
Clients still access the market via LME member firms and price data continues to be available from existing sources including; the LME Free Data Service, LMELive and licensed market data providers.
Wider input into price discovery
LME plastics prices correlate well with industry prices and now there is even greater participation in the price discovery process from:
This further increases the credibility of the LME price as a industry reference price.
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