Company News

Plastics trading to be removed from LME
Having ceased the floor trading of PP and LLDPE last year, the London Metal Exchange (LME) will now put an end to the online and phone trading of plastics futures contracts in 2011, due to the insignificant level of volumes

The last prompt dates for existing contracts for specified grades of PP and LLDPE will be 29 April 2011. The company said that despite a number of changes to the contracts and the subsequent launch of regional contracts, no significant volume or open interest had been established. It said, "The exchange believes that this position is unlikely to change in the foreseeable future."

LME said that even with the considerable effort it has put into this endeavour to bring transparency and hedging facilities to the plastic business, it now recognises that these efforts have not attracted sufficient volume of business and that the time had come to bring this activity to a close.