London metal trade was established basically in 1877 however the roots of it can be even identified through the leadership of Queen Elizabeth I at the Royal Change in London in 1571. LME has come very far and it has changed eventually to become among the significant industry alternatives for merchants thinking about materials. In December 2012, the London metal exchange (lme) was obtained by Hong Kong’s Trades and Clearing limited. Today, the lme can be an impressive, dynamic and modern international marketplace that is helping and supporting metals businesses from china to chile. There are nine organizations who enjoy exclusive rights to trade-in the ring of lme. Although you can find around 100 companies that are linked to the lme as a whole. LME is a common platform for all your consumers and manufacturers of materials from around the world to have an exposure of global metal trading market.
LME is running with time, they have been introducing various initiatives which support their trading business. Usage of latest technology to the system of trading and forum discussion has benefitted lme. LME also has an electric trading system, which handles many part of LME business. They provide trading via telephone, via electronic means as well as by their standard trading approach to ring trading. Started with less amount of materials in their case, now lme inventory includes almost all non-ferrous metals (Aluminum, zinc, jar, copper, lead, NASAAC, Dime, LMEX, LME mini, metal materials and many more), ferrous metals (aluminum scrap and steel rebar), small metals (Molybdenum and cobalt) and precious metals (LME silver, LME Platinum, LME Palladium, LME Gold etc.).
Good reasons for lme being among the largest market options,
It is world’s initial non-ferrous metals industry which offers futures and options for materials like copper, metal, and steel.
It offers a forum platform to find prices for months ahead.
Great hedging- LME has revised its operating procedure with the modernization. They have their own LME approved warehouses, which are ideal for actual delivery in several countries.
24 hours per day global operations
Usage of robust technology
Birmingham metal exchange has changed from as an important trading center of metals to world’s primary exchange for materials future and options.
In last decade, it’s completed a trading of worth $US40 trillion dollars.
Lme is solely responsible for choosing a price for metals and because of its trading. These costs for various metals are determined from the people of the ring of London metal trade. LME has been developing at a very fast rate being that they are giving their support in the most contemporary, trustworthy and immediate level because they can. They’ve developed their particular request for going live while trading as well as for expressing the information through LMELive. Companies for example LMELive (that has been designed on the JAVA software) has presented a superb ease for the dealer using the real time information and knowledge of LME on their display even when they’re a large number of miles definately not their heart in London.
Research for lme inventory for the year 2016
157 million lots
3.5 billion tons
$10.3 trillion notional