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Global Polypropylene (PP)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 12 without additives. |
12 (-2/+3) |
All Locations |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 20 without additives. |
20 (+/-3) |
All Locations |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 25 without additives. |
25 (+/-5) |
All Locations |
|
Homopolymer general-purpose fibre (‘raffia') extrusion grade. Nominal melt flow rate 3.5 without additives. |
3.5 (+/-1) |
All Locations |
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 ), Singapore, Gwangyang and Port of Tanjung Pelepas (PTP) ( Asia ) as at September 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as PP Warrants. All PP Warrants will be deliverable against the PP global contract.
North American Polypropylene (PN)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 12 without additives. |
12 (-2/+3) |
North America |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 20 without additives. |
20 (+/-3) |
North America |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 25 without additives. |
25 (+/-5) |
North America |
|
Homopolymer general-purpose fibre (‘raffia') extrusion grade. Nominal melt flow rate 3.5 without additives. |
3.5 (+/-1) |
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 September 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as PP Warrants. Only Warrants for polypropylene held in North America will be deliverable against the PN contract.
European Polypropylene (PE)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 12 without additives. |
12 (-2/+3) |
Europe |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 20 without additives. |
20 (+/-3) |
Europe
|
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 25 without additives. |
25 (+/-5) |
Europe
|
|
Homopolymer general-purpose fibre (‘raffia') extrusion grade. Nominal melt flow rate 3.5 without additives. |
3.5 (+/-1) |
Europe
|
Contract Size: Standard delivery 24.75 tonnes per contract lot.
Delivery points: LME approved warehouses in Antwerp and Rotterdam ( Europe ) as at September 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as PP Warrants. Only Warrants for polypropylene held in Europe will be deliverable against the PE contract.
Asian Polypropylene (PA)
|
Grade |
Melt Flow Rate (MFR) |
Deliverable |
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 12 without additives. |
12 (-2/+3) |
Asia
|
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 20 without additives. |
20 (+/-3) |
Asia
|
|
Homopolymer general purpose injection moulding grade. Nominal melt flow rate 25 without additives. |
25 (+/-5) |
Asia
|
|
Homopolymer general-purpose fibre (‘raffia') extrusion grade. Nominal melt flow rate 3.5 without additives. |
3.5 (+/-1) |
Asia
|
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 ) as at September 2008.
Plastics Warrants (PWs) will be held in the LME's SWORD system as PP Warrants. Only Warrants for polypropylene held in Asia will be deliverable against the PA 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 12.30 (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 |
|
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 12.20 ring of 21 June. It will be the official Cash price on 21 June.
LME Select Contract Codes
PPD Global Polypropylene (US dollars)
PND North American Polypropylene (US dollars)
PED European Polypropylene (US dollars)
PAD Asian Polypropylene (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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