Polypropylene Contract
Specification
Contract Features
Polypropylene (PP) - three
grades
All grades deliverable without premium or discount to each
other.
Delivery
Contracts to be deliverable monthly,
on a global basis, the choice of which LME approved brand and delivery location
(Houston, Antwerp / Rotterdam area and Singapore / Johor PTP) at the seller’s
option, with the exception of the two new PP grades which are only deliverable
in one location each, as outlined above.
Packaging
Standard delivery, 24.75 tonnes packaged on 18
pallets in 25 kilo bags (55 lb bags in USA), 55 bags per pallet, each pallet
shrink /stretch wrapped and covered with a plastic hood.
Clearing
Contracts to be cleared by LCH.Clearnet
(LCH)
Trading Features
Trading Times
Trading will take place in Rings at 12:20
and 15:55 and Kerbs 1-9 inclusive, on LME Select (01:00-19:00) and on the
inter-office telephone market.
Contract Series
Trading will be for monthly contracts
out to 15 months forward.
Contract Type
Futures contracts. Initially there will be
no LME options or TAPOs contracts until liquidity in the futures contracts has
reached a level to support them.
Pricing Basis
Pricing basis of the LME deliverable
product will be free on truck, duty unpaid, in LME approved Fiscal Warehousing /
Free Trade Zone, choice of brand and location at seller’s option.
Currency
Major trading currency is US dollars, can also
be traded and cleared in J yen, euro and sterling.
Minimum Price Movement
$0.01 per tonne.
Official Prices
Official prices established as per
current LME system, but basis open outcry at the end of the first Ring trading
session of the day (i.e. at 12:25 London time).
Official Settlement Prices
The official monthly
settlement price will be derived from the reference price set on the last
business day of the month preceding the delivery month (i.e. the expiry month).
This price will be the official reference offer price (seller's price) set at
the end of the first Ring trading session of the day (i.e. at 12:25 London
time).
Closing Prices
Daily closing prices established as per
current LME system, basis open outcry in last trading session of the day (i.e.
17:00 London time).
Trading and Delivery
Calendar
Cessation of Trading
Cessation of trading for the nearby
delivery month (also known as the front month) will be at 19:00 London time, on
the last working day of the month before the month of delivery.
Delivery
Delivery is by electronic transfer of Plastics
Warrants (PWs) from seller to buyer using the LME’s SWORD system on the
Settlement Day. The seller has the choice of which PWs to deliver but must
ensure that the appropriate PWs are available to deliver by the deadline.
Deadline for PW Creation
12:00 London time on the
working day prior to PW transfer date.
Settlement Day
The Third Wednesday of each calendar
month. This is the day when all plastics contracts are settled, either by
payment for the cash difference between buy and sell contracts and/or for the
delivery of PWs that will be transferred from seller to buyer, via the brokers
and LCH.Clearnet, in fulfilment of each person’s delivery obligations. Invoicing
for PWs will be basis the LME settlement price for that month.
Delivery Features
Plastics Warrants (PWs)
Each PW is a bearer document of
possession (as with LME warrants) representing a specified parcel of physical
product in 25 kg bags (55 lbs in USA) at facilities operated by LME approved
warehouses in LME approved delivery points. Once the warehouse has
satisfactorily checked the documentation and completed its visual inspection of
the bagged, palletised (shrink/stretch wrapped and covered with a plastic hood)
product, it will instruct its London agent to create the relevant PWs using the
LME’s SWORD system.
Plastics Warrants can only be created from plastic
that (a) has arrived at the Listed Warehouse Company a maximum of four months
from the month of production, (b) has been continuously stored at the same
location by the Listed Warehouse Company since the date that it arrived at that
Listed Warehouse Company and (c) the date of warranting is no more than 17
months from the month of production. Plastics Warrants will time expire on the
last day of the thirty sixth calendar month inclusive of the month of
production, as determined by the start date of the production
batch.
Other Features
Arbitration
In case of un-resolvable disputes,
arbitration will be effected via the LME arbitration procedure, and/or by other
body agreed by the parties.
Law/Regulation
English Law, with regulation by LME and
Financial Services Authority (FSA).
Linear Low Density Polyethylene Contract
Specification
Contract
Features
Linear Low Density Polyethylene butene (LL) copolymer general purpose blown film and blending grade, nominal melt flow rate 0.8 (-0.1/+0.4), without additives such as slip and anti-block.
Delivery
Contracts to be deliverable monthly, on a global
basis, the choice of which LME approved brand and delivery location (Houston,
Antwerp / Rotterdam area and Singapore / Johor PTP) at the seller’s option.
Packaging
Standard delivery, 24.75 tonnes packaged on 18
pallets in 25 kilo bags (55 lb bags in USA), 55 bags per pallet, each pallet
shrink /stretch wrapped and covered with a plastic hood.
Clearing
Contracts to be cleared by LCH.Clearnet
(LCH)
Trading Features
Trading Times
Trading will take place in Rings at 12:20
and 15:55 and Kerbs 1-9 inclusive, on LME Select (01:00-19:00) and on the
inter-office telephone market.
Contract Series
Trading will be for monthly contracts
out to 15 months forward.
Contract Type
Futures contracts. Initially there will be
no LME options or TAPOs contracts until liquidity in the futures contracts has
reached a level to support them.
Pricing Basis
Pricing basis of the LME deliverable
product will be free on truck, duty unpaid, in LME approved Fiscal Warehousing /
Free Trade Zone, choice of brand and location at seller’s option.
Currency
Major trading currency is US dollars, can also
be traded and cleared in J yen, euro and sterling.
Minimum Price Movement
$0.01 per tonne.
Official Prices
Official prices established as per
current LME system, but basis open outcry at the end of the first Ring trading
session of the day (i.e. at 12:25 London time).
Official Settlement Prices
The official monthly
settlement price will be derived from the reference price set on the last
business day of the month preceding the delivery month (i.e. the expiry month).
This price will be the official reference offer price (seller's price) set at
the end of the first Ring trading session of the day (i.e. at 12:25 London
time).
Closing Prices
Daily closing prices established as per
current LME system, basis open outcry in last trading session of the day (i.e.
17:00 London time).
Trading and Delivery
Calendar
Cessation of Trading
Cessation of trading for the nearby
delivery month (also known as the front month) will be at 19:00 London time, on
the last working day of the month before the month of delivery.
Delivery
Delivery is by electronic transfer of Plastics
Warrants (PWs) from seller to buyer using the LME’s SWORD system on the
Settlement Day. The seller has the choice of which PWs to deliver but must
ensure that the appropriate PWs are available to deliver by the deadline.
Deadline for PW Creation
12:00 London time on the
working day prior to PW transfer date.
Settlement Day
The Third Wednesday of each calendar
month. This is the day when all plastics contracts are settled, either by
payment for the cash difference between buy and sell contracts and/or for the
delivery of PWs that will be transferred from seller to buyer, via the brokers
and LCH.Clearnet, in fulfilment of each person’s delivery obligations. Invoicing
for PWs will be basis the LME settlement price for that month.
Delivery Features
Plastics Warrants (PWs)
Each PW is a bearer document of
possession (as with LME warrants) representing a specified parcel of physical
product in 25 kg bags (55 lbs in USA) at facilities operated by LME approved
warehouses in LME approved delivery points. Once the warehouse has
satisfactorily checked the documentation and completed its visual inspection of
the bagged, palletised (shrink/stretch wrapped and covered with a plastic hood)
product, it will instruct its London agent to create the relevant PWs using the
LME’s SWORD system.
Plastics Warrants can only be created from plastic that (a) has arrived at
the Listed Warehouse Company a maximum of four months from the month of
production, (b) has been continuously stored at the same location by the Listed
Warehouse Company since the date that it arrived at that Listed Warehouse
Company and (c) the date of warranting is no more than 17 months from the month
of production. Plastics Warrants will time expire on the last day of the thirty
sixth calendar month inclusive of the month of production, as determined by the
start date of the production batch.
Other
Features
Arbitration
In case of un-resolvable disputes,
arbitration will be effected via the LME arbitration procedure, and/or by other
body agreed by the parties.
Law/Regulation
English Law, with regulation by LME and
Financial Services Authority (FSA).