You are here: home | steel faqs

I have some non-ferrous metal/steel and would like to buy or sell on/to the LME.
The LME is a financial market used to manage future price risk, supported by the option of physical delivery (a terminal market). The LME does not facilitate physical trading for the purchase or sale of physical material. Companies with physical metal to sell will normally deal directly with their customers or through merchants. Some LME members are active in the physical market and have a physical trader or trading department trading LME warrants.

Metal that is ‘good for delivery’, is stored on warrant in LME-approved warehouses and must meet the specifications of the individual metal contracts laid down by the LME. In order to ensure the quality of metal held on warrant for delivery against LME contracts, all material must be of a brand listed as good delivery and approved by the LME directors. If a party wishes to sell material and that material is of a brand and specification in accordance with LME rules, then the party can deliver the material to the warehouse, have it placed on warrant and sell it through a broker.