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AL CIRCLE

London Metal Exchange adds six new cash-settled futures contracts, including aluminium scrap

EDITED BY : 2MINS READ

The London Metal Exchange (LME) has announced the launch of a six new cash-settled futures contracts. The new cash-settled futures include lithium hydroxide, two regional steel scrap contracts, European HRC, aluminium scrap, and a duty paid European aluminium premium contract.

aluminium

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Georgina Hallett, LME Chief Sustainability Officer, said: “We are really pleased to be delivering an important element of our sustainability strategy – which positions transparency and access as the core components for making metals the cornerstone of a sustainable future. Our lithium and scrap contracts are the product of valuable engagement with the metals and mining industry, our members and core users, as we all seek to best support the growth of the circular and low carbon economies.”

The aluminium scrap contract focuses on the North American used beverage can (UBC) market, while there is also an aluminium premium contract for Europe and three new steel contracts.

The aluminium scrap contract focuses on the sizeable North American used beverage can (UBC) market in managing its price risk and facilitating the development of the broader recycled aluminium value chain. LME Aluminium Duty Paid European (Fastmarkets MB) contract completes the LME offering for European aluminium premiums.

aluminium

Ron Mitchell, Sales Director of Tianqi Lithium Corporation’s International Business Group and Chairman of the LME Lithium Committee, commented: “The LME has been working collaboratively with lithium market participants, across the globe, for over three years to gain an in-depth understanding into the commercial and technical nuances of an industry that is still in the preliminary stages of its maturation. The launch of the lithium hydroxide cash-settled futures contract represents a significant milestone not only for the LME but also for the global lithium industry. The contract offers the industry an important price risk management tool and comes at a critical time to support the future electrification goals of many nations.”

All the six new cash-settled futures trade monthly out to 15 months, and are priced and cleared in USD.


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EDITED BY : 2MINS READ

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