FOCUS: LME’s low-carbon aluminium initiatives divide market

The London Metal Exchange has bolstered efforts to explore low-carbon initiatives this month, emphasizing green aluminium production as its target, but at a time of unprecedented distortions across the global raw materials supply chain, market sentiment remains mixed.

The exchange is set to begin exploring steps to incorporate diversified aluminium production into its systems, LME chief executive Matthew Chamberlain said in an interview with the UK’s Financial Times on Friday June 5.
This will include the launch of a scrap aluminium contract, along with conducting an investigation into the launch of a spot trading platform centered on low-carbon aluminium warrants.
“We are actively engaging with our stakeholders on environmental sustainability issues – particularly in the aluminium sector, and are committed to supporting initiatives that facilitate the global transition to a low-carbon economy,” the LME said in a statement last week.

“Our plans include the launch of a scrap aluminium contract to support price risk management, as well as working with the market to investigate a standalone spot trading platform for the exchange of aluminium warrants, enabling downstream users to procure metal with their required characteristics, such as low...

Published

Hassan Butt

June 11, 2020

16:46 GMT

London