Trading of Plastics Futures Contracts Begins on the London Metal Exchange

Trading of plastics futures contracts, for polypropylene and linear low-density polyethylene, commenced today at The London Metal Exchange (LME). Futures contracts will enable the plastics industry to hedge against volatile polymer prices for the first time. 

Trading of plastics futures contracts, for polypropylene and linear low-density polyethylene, commenced today at The London Metal Exchange (LME). Futures contracts will enable the plastics industry to hedge against volatile polymer prices for the first time. The industry will additionally benefit from a globally recognised price, ‘discovered’ in a transparent and well-regulated environment, which can be used as the basis of physical supply contracts. Since announcing its intention to launch the contracts, the LME has undertaken detailed research and consultation to ensure the contract specifications fully meet the needs of the plastics industry. To help organisations understand the implications and practicalities of futures contracts, the LME has also carried out an extensive schedule of international roadshows and is now also delivering an educational training programme.