LME announces change to price discovery process for plastics

The London Metal Exchange (LME) has modified the price discovery process for plastics futures contracts traded on the Exchange. Since 15 February prices for the LME plastics contracts in polypropylene and linear low density polyethylene will be discovered on LMEselect, the London Metal Exchange's electronic trading platform. As part of the process the plastics contracts will be removed from open outcry trading in the Ring.

The volume-weighted average price from LMEselect for the period from 12.20 - 12.25 will be used to discover the daily Official price.

Martin Abbott, CEO of the London Metal Exchange comments: "There is still a valid case for plastics futures and there is evidence that in the last year market participants in the plastics industry have become more focused on risk management practices. We have chosen to focus liquidity on the electronic and telephone markets since this is what the industry uses most.”

More Information: www.lme.co.uk