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- LME Aluminium (or LME Aluminum in American and Canadian English) stands for a group of spot, forward, and futures contracts, trading on the London Metal Exchange (LME), for delivery of primary Aluminium that can be used for price hedging, physical delivery of sales or purchases, investment, and speculation. Producers, semi-fabricators, consumers, recyclers, and merchants can use Aluminium futures contracts to hedge Aluminium price risks and to reference prices. Notable companies that use LME Aluminium contracts to hedge Aluminium prices include General Motors, Boeing, and Alcoa. As of late 2019, the system of LME Aluminium contracts is associated with 1.27 to 1.49 million tonnes of physical primary Aluminium stored in 500 to 700 warehouses around the world, out of 2.78 million tonnes of global reported warehoused Aluminium, and 11.78 million tonnes of global reported and unreported warehoused Aluminium. For comparison, world production of primary Aluminium in 2019 is 63.70 million tonnes, which implies that physical Aluminium tied up in the LME warehouse system for LME Aluminium contracts only makes up between 2.0% to 2.3% of world annual production. Despite the low amount of physical Aluminium tied to the LME contracts, they have become an important source of hedging and price discovery. (en)
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| rdfs:comment
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- LME Aluminium (or LME Aluminum in American and Canadian English) stands for a group of spot, forward, and futures contracts, trading on the London Metal Exchange (LME), for delivery of primary Aluminium that can be used for price hedging, physical delivery of sales or purchases, investment, and speculation. Producers, semi-fabricators, consumers, recyclers, and merchants can use Aluminium futures contracts to hedge Aluminium price risks and to reference prices. Notable companies that use LME Aluminium contracts to hedge Aluminium prices include General Motors, Boeing, and Alcoa. (en)
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