In addition to execution services, we have an experienced team capable of assisting in the development and establishment of hedging strategies. This can entail detailed discussions with the client to identify the metal price risk, establish their hedging objectives and the suggestion of different alternative products and strategies.




Base metals

Aluminium

To view contract specifications:
Primary Aluminium - London Metal Exchange
LME Aluminium Alloy Futures
Aluminium - New York Mercantile Exchange - COMEX Division

Production and trade
Most aluminium is produced from bauxite, the main supplies of which are found in Australia, South America, India, the Caribbean and Africa. Aluminium has a higher strength to weight ratio than most other metals or materials. Aluminium ingots are used mostly for foundry castings. Semi-fabricated products make up the majority of the market, with the primary users being the automotive industry and container and packaging industries. Electrical transmission is also heavily aluminium intensive.

Total world production exceeds 30 million metric tonnes per annum with the USA, Russia, China and Canada accounting for over 50%.

The primary futures market for aluminium is the London Metal Exchange, although the New York Mercantile Exchange listed an alternative contract in early April 1999.

The LME also offers two Aluminium Alloy contracts, which are mainly used by the automotive industry.

Copper

To view contract specifications:
Copper Grade A - London Metal Exchange
High Grade Copper - New York Mercantile Exchange - COMEX Division

Production and trade
There are two main elements of production in the copper industry. Producers are involved in the mining, smelting and/or refining of copper ore. Fabricators use the refined cathode copper and wire rod supplied by producers to make a range of products e.g. electrical cable, sheet copper, powder, forgings etc. Some of these products undergo further metalworking, whilst others are used as end-products.

Worldwide mine production exceeds 17 million tonnes and there are huge resources, both land and sea based. Chile and Canada are the world's largest copper mine producers.

Copper's importance in world markets and its price responsiveness to world events makes copper futures and options important risk management tools, as well as attractive speculative instruments. The two main futures markets for copper are the London Metal Exchange and COMEX, a division of the New York Mercantile Exchange (NYMEX) in the United States.

Nickel

To view contract specifications:
Primary Nickel - London Metal Exchange

Production and trade
Approximately two thirds of the world's nickel consumption is utilised for the production of stainless steel. The increase in world capacity of nickel production is not expected to be able to keep pace with the growth in consumption and a lack of economically or feasibly viable substitutes for nickel advocates further exploration for additional resources. World production of nickel now exceeds 1.3 million metric tonnes per annum with a worldwide reserve base estimated at 140 million metric tonnes. Russia, Canada, New Caledonia, Cuba and Australia are major producers of nickel.

Zinc

To view contract specifications:
Special High Grade Zinc - London Metal Exchange

Production and trade
Zinc has a variety of uses, both as a co-product and a by-product of, for example, lead, silver, copper and cadmium. Zinc's primary industrial uses are in the construction, electrical and transportation industries. For many purposes, it is alloyed with another metal, although galvanising for the rust proofing of steel is its largest area of consumption. Zinc is the third most widely used non ferrous metal (after aluminium and copper). Total world production now exceeds 10 million metric tonnes per annum. Canada, Australia and China are the three largest producers of zinc, with Australia holding the highest reserves.

Tin

To view contract specifications: 
Tin - London Metal Exchange

Production and Trade
Tin, like copper, was one of the first metals mined and its excellent qualities and shiny finish made it a highly sought after commodity. Particularly liked for its fusion abilities in the making of alloys, notably bronze, and its non-toxic qualities, tin was soon traded in many parts of the world. Not surprisingly, it was traded on the LME from the market’s outset in 1877. Today it is still used in the production of bronze, pewter and die-casting alloys and, in modern engineering, to make tungsten more machinable. However, the largest uses for tin are for the production of solders and for tin plating (providing an attractive coating to iron and steel products).

Lead

To view contract specifications:
Lead - London Metal Exchange

Production and Trade
Being very soft and pliable and highly resistant to corrosion, lead was ideal for use in plumbing as well as for the manufacture of pewter. In the early 20th century the automotive industry took off and new areas of consumption – batteries and petrol – created an enormous market. Storage batteries remain the main outlet but lead-free fuels have caused a decline in usage. Ironically, environmental issues have brought about new uses for the metal, particularly in the housing of power generation units to protect against electrical charges or dangerous radiations.

LMEmini

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LMEmini

The London Metal Exchange (LME) launched small-size, cash settled, monthly futures contracts, traded electronically and via the telephone market, initially for copper, aluminium and zinc in December 2006.

LMEminis offer the market a new contract which is accessible, transparent and simple to trade. In addition, being cash-settled, the contracts are built on the reputation, credibility and liquidity of the existing LME contracts.