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LME Aluminium launched in 1978 and has since become the London Metal
Exchange’s (LME) most liquid contract. Backed by the LME’s strong ties with
the physical industry, traders can benefit from tight spreads, a deep order book
and a forward curve out to 10 years.
Aluminium, in its natural state of bauxite, is the most abundant Aluminium production by region 2016
metal on earth, accounting for approximately 8% of its crust. It is (million metric tonnes)
characterised as a soft, lightweight, durable and malleable metal.
Although the use of aluminium dates back to ancient Greek and
Roman times, it was not until 1825 that the metal was extracted
and used in the form we know it as today.
Al +
Bauxite Alumina Reduction Primary Aluminium Recycling
mining process aluminium alloys
Bauxite is a Bauxite is crushed, This involves is cast into ingots Aluminium is It can be
mineral rich mixed with caustic introducing an and shipped shaped into its re-melted and
in aluminium soda, ground and electric current to around the world required form for recycled due to
heated to produce the alumina in a for various uses use in products its corrosion
alumina reduction cell to break e.g. car parts, resistant
up the oxygen and aircraft etc properties
aluminium atoms,
known as the
Hall-Heroult process
LME price
Trading aluminium on LME
Trading LME Aluminium can help diversify your portfolio. All of LME trading venues and prices
our base metals contracts have close ties with the physical market. Telephone – The Exchange supports an inter-office market
The prices discovered on the LME are used the world over in between LME members which operates 24 hours a day.
physical contracts, and because they can be physically settled – All telephone trades are matched and cleared through our
using the LME warehouse network – LME prices converge with matching platform, LMEsmart, and clearing house, LME Clear.
the physical market.
Electronic – LMEselect is our electronic trading platform,
The interaction on the LME between the physical and financial which integrates with member trading platforms via a FIX API,
communities provides highly liquid and deep order books with either from member sites or via data centres to facilitate low
tight spreads. latency trading strategies. LMEselect is open for trading between
01:00 and 19:00 (London time). LMEselect is only available to
The LME’s unique prompt date structure allows you to trade daily
LME members but clients of LME members can access it via
out to three months, weekly out to six months and monthly out to
member systems or member-sponsored Independent Software
ten years.
Vendor (ISV) platforms (see below for more details).
LME Aluminium facts The Ring – The Ring, our open-outcry trading floor, is central to
• Lot size: 25 metric tonnes the process of price discovery. Each LME metal is traded in
• Tick value: $12.50 highly liquid five-minute Ring sessions, which are themselves
• Cost to tick ratio: 0.216 representative of global supply and demand. Aluminium is traded
• Contract types: Futures, Options, TAPOs, Monthly Average on the Ring at these times: 11:55-12:00, 12:55-13:00, 15:15-15:20,
Futures, LMEminis and HKEX London Minis traded on HKEX 15:55-16:00 and ceases trading at 16:45 (London time).
derivatives platform.
Prices – The LME Official Price for aluminium, discovered on
the Ring between 12:55 -13:00, is used as the global reference.
Useful reports Contracts for physical material across the aluminium value
LME Aluminium trading volumes, price and stocks data can be
chain will typically use the LME price plus a regional premium
found on our website lme.com/reports.
and, depending where they fit in the supply chain, an additional
Get real time and historical LME trading data from any of our premium value. The LME Aluminium Closing Price, discovered at
licensed distributors by visiting: lme.com/licenseddistributor 16:45, is used for margining and valuation purposes.
Greeksoft Technologies
FlexTrade UK Limited
Trading Technologies
SharpPoint System
Software Technology
FFastFill Europe
Redline Trading
International Inc
Patsystems UK
ObjectTraining
Stellar Trading
Shanghai Feishu
FIS (SunGard)
RTS Realtime
Systems LLC
Technology
ATPlatform
Ion Trading
Fidessa plc
CQGT LLC
Solutions
OnixS.biz
Omnesys
Systems
Systems
E-Sunny
PVT. LTD
Limited
Limited
Ullink
Co. Ltd
KCG
Contracts
3M
3rd Weds
3rd Weds -
3rd Weds
LME
options
LME Aluminium trading data
Futures Options TAPOs
Average daily volume 300,000
Daily volume for LME Aluminium averages
over 200,000 lots per day. LMEselect 250,000
accounts for about 40% of all market
traded volume. Lots 200,000
150,000
100,000
50,000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Volatility % (RHS)
liquidity on one day.
US dollars ($)
2,000
0.30%
Volatility is an important parameter
1,500
for some participants as it can often
determine the level of involvement in 0.20%
1,000
a financial instrument.
0.10%
500
0 0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
1,500
50,000
of each month.
Lots
40,000
1,000
30,000
20,000
500
10,000
0 0
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
2015 2016 2017
3M to 3rd Wednesday spread 40
This is the spread between the 3M rolling
30
forward contract and a monthly futures
contract or an adjustment of a position 20
from the daily expiry (three months Month 2 – Month 3, US dollars ($)
forward) into monthly expiry. 10
0
Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan
-10 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-20
-30
-40
-50
Calendar spread 30
0
Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-10
-20
-30
-40
1,200
1,000
J F M A M J J A S O N D J F M A M J J A S O N
2016 2017
LME Aluminium contract specification
Contract specification LME Aluminium
Termination of trading Up until the close of the first Ring the day before the prompt date
For more information about LME Aluminium please visit our website at
lme.com/aluminium or get in touch with the team: sales@lme.com
© The London Metal Exchange (the “LME”), 2017. The London Metal Exchange logo is a registered trademark of The London Metal Exchange.
All rights reserved. All information contained within this document (the “Information”) is provided for reference purposes only. While the LME endeavours to ensure the accuracy, reliability and completeness
of the Information, neither the LME, nor any of its affiliates makes any warranty or representation, express or implied, or accepts any responsibility or liability for, the accuracy, completeness, reliability or
suitability of the Information for any particular purpose. The LME accepts no liability whatsoever to any person for any loss or damage arising from any inaccuracy or omission in the Information or from any
consequence, decision, action or non-action based on or in reliance upon the Information. The Information does not, and is not intended to, constitute investment advice, commentary or a recommendation
to make any investment decision. The LME is not acting for any person to whom it has provided the Information. Persons receiving the Information are not clients of the LME and accordingly the LME is not
responsible for providing any such persons with regulatory or other protections. All persons in receipt of the Information should obtain independent investment, legal, tax and other relevant advice before
making any decisions based on the Information.
LME contracts may only be offered or sold to United States foreign futures and options customers by firms registered with the Commodity Futures Trading Commission (CFTC), or firms who are permitted to
solicit and accept money from US futures and options customers for trading on the LME pursuant to CFTC rule 30.10.
V2/1017/WPB