London Metal Exchange Launched New Scrap Contracts

SEATTLE (Scrap Monster): The London Metal Exchange (LME) announced launch of six new cash-settled future contracts. The contracts, priced and cleared in US dollar, include lithium hydroxide, two regional steel scrap contracts, European HRC, aluminium scrap, and a duty paid European aluminium premium contract.

The newly launched futures offer pricing and risk management solutions for metals that support the EV transition. For instance, the LME Lithium Hydroxide CIF (Fastmarkets MB) is a battery-grade futures contract will help in bridging the need for risk management for manufacturers of battery and car. The launch of the contract, a significant milestone for the global lithium industry, follows years of work by the Exchange in collaboration with lithium market participants across the globe for more than three years.

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The two new regional steel scrap contracts launched by the LME are LME Steel Scrap CFR Taiwan (Argus) and LME Steel Scrap CFR India (Platts). They will refer regional prices and will position LME at the centre of the global steel scrap trade.

The Exchange also announced launch of a new European hot-rolled coil contract- LME Steel HRC NW Europe (Argus). The launch also includes two aluminium products- LME Aluminium UBC Scrap US (Argus) and LME Aluminium Duty Paid European (Fastmarkets MB).