The LME has provided the physical metals community – those who make metal and those who make things out of metal – with a number of key services since 1877.
As a “market of last resort” the LME enables producers and consumers to take delivery of metal in times of under-supply and make delivery in times of over-supply.
The prices discovered on our markets are reflective of global supply and demand and our contracts are designed to mirror physical trading.
Our global network of licensed warehouses supports physical delivery and ensures price convergence. All metal delivered into LME-approved storage facilities must conform to specifications on quality, shape and weight.
We have also introduced a new responsible sourcing framework to ensure that all the supply chains of LME-listed metal are also free from corruption and the worst forms of child labour.
The physical metals market is very much part of our DNA and it’s this blueprint that shapes almost all facets of our business.
Physical market benefits
The LME provides the metal community with trusted global reference prices and a market of last resort.
The LME approves and licenses a network of warehouses and storage facilities around the world.
The LME delivery system relies on a user being guaranteed a specified quality and quantity of metal.