LME ring restored after Covid

The London Metal Exchange Trading Ring reopens on Monday 6 September after an enforced break of 18 months because of Covid-19.

After a period of consultation on various proposals including closure, closing prices are now being traded electronically via LMESelect while only official prices will move back onto the open-outcry trading ring. LME says this arrangement caters for both smaller physical customers, who use official prices in their contracts and overall prefer these to be determined in the ring, as well as financial and larger physical users, who focus primarily on closing prices and generally favour electronically derived pricing.

The consultation on a split pricing approach was launched in June following the results of a discussion paper process on the LME’s market structure.

LME ceo Matthew Chamberlain says: ‘We believe this split pricing model is the best outcome for the market as a whole, allowing increased participation and transparency in the closing price process, while enabling different user groups to access and take part in pricing in the way that best suits their business.’

Meanwhile, LME has launched six new cash-settled futures, including lithium hydroxide, steel scrap and aluminium scrap contracts. One of the newcomers, LME Aluminium UBC Scrap US, focuses on the sizeable North American used beverage can market.