10 June 2004 16:42 [Source: ICIS news]
LONDON (CNI--The London Metal Exchange (LME) on Thursday released details of the contract specifications for the two plastics contracts due to be traded on the LME before the year-end.
The specifications are being released as part of the launch process of plastics futures on the LME to give producers, consumers, traders and LME members time to prepare for the contracts launch.
“We have engaged with the plastics industry and we are confident that the contract specifications provide the blueprint for the successful launch and continued trading of plastics futures contracts,” LME chief executive Simon Heale said. “We are planning that the exchange will be ready by the end of the year,” he added.
The contract descriptions give standard delivery, packaging and pricing details as well as delivery points and features. The PP contract will be based on a ‘barefoot’ general purpose injection moulding homopolymer with a nominal melt flow rate of 12. The second contract will be for general purpose film/blending grade lldPE butene copolymer with a nominal melt flow rate of 0.8 with slip and anti-block additive.
The LME said that contracts would be traded in open outcry at ?xml:namespace> and local time each day in five minute rings with both contracts being traded simultaneously in each ring. Electronic trading would be from until
Minimum price fluctuations would be 0.01 currency unit per metric tonne or 0.25 currency unit per contract for dollar, sterling and euro trades and Yen1 per metric tonne or Yen25 per contract. LME official prices will be established at , the close of the second plastics ring with closing prices established at .
“I am convinced that the plastics industry and the exchange’s membership will find value in this major development and the specifications will allow them to organise their resources in anticipation of the launch,” Heale said.
The LME and its member companies are promoting these planned contracts as well as looking at what further related petrochemicals contracts might be made available.
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