The LME works closely with stakeholders across the industry to design and develop new trading and risk-management tools to meet their evolving needs. Our new contracts build on our existing offering to give both the physical and financial communities more opportunities to manage their price risk, and are scheduled to launch in the summer, 2021.
Our current product pipeline - subject to regulatory approval - includes:
Three new steel contracts will build on our existing regional offering for the ferrous market. LME Steel HRC NW Europe (Argus) will settle to Argus’ Steel HRC ex-works Northwest Europe price; while LME Steel Scrap CFR Taiwan (Argus) will settle to Argus’ Ferrous scrap HMS 1/2 (80:20) containerised CFR Taiwan price. Read more about this in LME Notice 20/157. LME Steel Scrap CFR India (Platts) will settle to Platts' Shredded Scrap CFR Nhava Sheva price.
LME Aluminium Duty Paid European (Fastmarkets MB) will become the third cash-settled product in our aluminium premiums suite. It will settle against the midpoint of Fastmarkets' Aluminium P1020A premium, in-whs dp Rotterdam, $/tonne price.
Alongside this, we’ll also introduce a new aluminium used beverage can (“UBC”) contract. LME Aluminium UBC Scrap US (Argus) will settle to Argus’ Aluminium Scrap Cans (UBC) mill grade delivered US price; together with our ferrous scrap products this contract forms part of the LME’s drive to providing products which facilitate greater sustainability in the metals industry.
We've been working in partnership with Fastmarkets to develop a new pricing solution for the lithium industry, with the ultimate goal of launching a new lithium futures contract. Our new contract, LME Lithium Hydroxide CIF (Fastmarkets MB), will settle to Fastmarkets Lithium hydroxide monohydrate 56.5% LiOH.H2O min, battery grade, spot price cif China, Japan & Korea, $/kg.
Each Friday, Fastmarkets' weekly prices for lithium hydroxide are shared on our Lithium at the LME section.
Our new contracts build on our existing offering to give both the physical and financial communities more opportunities to manage their price risk, and are scheduled to launch during H1 2021.
Visit our cash settled futures page