LME
New regional futures contracts for polymers / Exchange hopes for increased liquidity
From 27 June 2007, the London Metal Exchange (LME, www.lme.com) will introduce major changes to its futures contracts for PP and LLDPE. Three new regional contracts – one each for Europe, North America and Asia – will be introduced to supplement the existing global contracts, additional prompt dates also will be introduced.
Two years after commencing trading in plastics futures, the exchange wants to "revitalise" the contracts in order to improve liquidity, said Neil Banks, LME director of exchange development. This, he added, would lead to wider use within the industry. PP trading in Europe was recently widened to include PP homo injection grade MFI 25.
According to the LME, around 715,000 t of PP and 635,000 t of LLDPE have changed hands since plastics futures trading started in May 2005. Based on LME´s statement that around 50 contract procedures generally correspond to one physical procedure, this would mean that the material basis for futures speculation in plastics over the past two years was around 15,000 t of PP and 12,500 t of LLDPE.
Two years after commencing trading in plastics futures, the exchange wants to "revitalise" the contracts in order to improve liquidity, said Neil Banks, LME director of exchange development. This, he added, would lead to wider use within the industry. PP trading in Europe was recently widened to include PP homo injection grade MFI 25.
According to the LME, around 715,000 t of PP and 635,000 t of LLDPE have changed hands since plastics futures trading started in May 2005. Based on LME´s statement that around 50 contract procedures generally correspond to one physical procedure, this would mean that the material basis for futures speculation in plastics over the past two years was around 15,000 t of PP and 12,500 t of LLDPE.
20.02.2007 Plasteurope.com [207480]
Published on 20.02.2007