LME Group Unveiled Plans to Strengthen Metals Market

SEATTLE (Scrap Monster): The London Metal Exchange (LME) announced that the LME Group has unveiled plans to strengthen the metals market. The prominent measures include making daily price limits permanent, revising its margin methodology, and developing a China-based spot market offering for Class II nickel products.

The Exchange press release noted that the daily price limits will be made permanent, with indicative revised limits of 12% for copper and aluminium. It proposes to introduce fast-track listing approach for LME Nickel, with coarse nickel powder considered as a potential deliverable shape. Also, it calls for development of China-based Class II nickel spot market offering on QME.

The two-year programme of change announced by the exchange in partnership with LME Clear aims to strengthen and enhance its markets. The action plan refers to recommendations put forward in the Oliver Wyman report, following the nickel market chaos in 2022.

Commenting on the development, Matthew Chamberlain, LME CEO, commented that the actions set out in today’s announcement are vital in building confidence in LME Nickel and to ensuring the long-term health and efficiency of LME markets. Furthermore, LME expressed its full commitment in supporting the trading community and working with its stakeholders to deliver the enhancements.

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