Last year produced yet another volume record at the London Metal Exchange (LME). More than 78 million lots were traded, representing an overall increase of 9.3% compared to 2004. At today’s prices, the total traded volumes were worth over US$ 4.5 billion.
Four contracts saw futures volume growth of more than 5% last year: the aluminium alloy contract grew 16.9% to 501 960 lots; the tin contract by 12.7% to just over 1 million lots; the nickel contract by 9.6% to around 3.5 million lots; and the copper grade A contract by 5.8% to more than 19 million lots. Traded options recorded growth of around 72% to almost 8 million lots while TAPOs (Traded Average Price Options) grew by 114% to 263 123 lots.
LME’s Chief Executive Simon Heale comments: ‘2005 has proved to be another strong year for the Exchange, following the high volumes achieved in both 2004 and 2003. These results further highlight the high levels of liquidity at the LME and the important role that we play in the world of non-ferrous metals and plastics.’
Mr Heale is ‘particularly encouraged’ by the steady growth in volumes for the recently launched plastics contracts: following their launch in May last year, 15 770 lots of polypropylene and 7626 lots of linear low-density polyethylene were traded during the remainder of 2005. And he adds: ‘We look forward to building on this strong performance in 2006 through our on-going commitment to review and enhance existing contracts and by pursuing new opportunities and products where the Exchange can add real value.’
