Global Metal Exchanges Witnessed Massive Volume Surge

SEATTLE (Scrap Monster): The three major metals exchange hubs in London, Shanghai and New York have recorded dramatic surge in trading volumes, amidst uncertainties on account of the swift spread of the deadly coronavirus.

The Shanghai trading volumes had been muted during the initial two months of 2020, as lockdown almost paralyzed the entire country during this period. However, trading volumes recorded notable surge in March. The tin contract volumes in Q1 this year skyrocketed to 2.25 million, as compared with 571,000 in the prior year quarter. The newly launched stainless steel contract too attracted huge trading interest in March this year.)

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The average daily activity on London Metal Exchange (LME) was 794,139 contracts in March, significantly higher by 15%. Also, this is the highest monthly total since April 2018. The Q1 2020 volumes on LME surged higher by 4.6% relative to 2019. The LME steel rebar volumes were up by 68% year-on-year.

The CME aluminium premium contracts saw substantial rise in activity. The volumes totalled 9,246 contracts in Q1 this year. The most active copper contracts saw 16% surge in volumes in the initial quarter, followed by 27% decline in the whole of year 2019. Meantime, market open interest recorded decline in March this year.