The London Metal Exchange (LME, www.lme.com) has proposed that “open outcry” trading of plastics in the ring should cease due to low trading volumes. LME’s planned changes follow consultation with its members and will bring to an end a trading platform launched in May 2005. Plastics futures for LLDPE and PP will now be traded solely on the exchange’s electronic platform, “LMESelect”, and on the inter-broker telephone market. The LME said that trading in the ring is likely to cease in February 2010. The proposals and member responses are currently being reviewed by the LME executive committee and will be put to its board.

The LME was criticised by some quarters for moving into plastics from its traditional metals markets. Trading volumes were low and there was little industry support. In April 2008, LyondellBasell (Rotterdam / The Netherlands; www.lyondellbasell.com) resigned its position on the LME plastics committee because trading volumes for plastics on the market had been growing at a lower than anticipated rate – see Plasteurope.com of 25.04.2008. Paradoxically, the first half of 2009 saw volumes increase by 1.8% year-on-year – the LME had budged for a drop of 10% in volumes due to the economic downturn.