The LME delivery system relies on a user being guaranteed a specified quality and quantity of steel billet. Steel can only be used to satisfy an outstanding contract if the billet is from an authorised brand listed producer and therefore conforms to the specifications outlined for the contract.
The process by which a steel producer registers a brand with the LME has been designed to be as straight forward and simple as possible. At the same time it must ensure that only metal of the specified quality and specifications can be placed on warrant and that the audit trail for each producer brand is maintained whilst on warrant.This ensures that the price traded on the LME represents the published steel billet contract specifications.
For details of the process please refer to the registration of steel billet production guidance notes included in PDF format below.
Watch how a scrap recycler uses the LME to manage risk