LME (London Metal Exchange)

1. Definition

The LME (London Metal Exchange) is the world center for the trading of industrial metals. Established in 1877, it sets the global reference prices for non-ferrous metals.

2. Key Products

It focuses on "Base Metals" essential for manufacturing and infrastructure: * Copper: Often called "Dr. Copper" for its ability to predict economic health. * Aluminum: Widely used in aerospace and packaging. * Nickel: Crucial for stainless steel and EV batteries. * Zinc, Lead, Tin.

3. Unique Characteristics

• The Ring: The LME is famous for maintaining its traditional "Open Outcry" trading floor (The Ring), where traders use hand signals and shouting to execute trades, alongside electronic systems.
• Physical Delivery: It serves as the "market of last resort" for the physical industry. The LME manages a global network of approved warehouses where metals can be stored and delivered.
• Pricing Benchmark: The official LME settlement price is used as the basis for contracts between miners and manufacturers globally.