![]() LME offers three groups of LME Copper contracts with daily, weekly, and monthly delivery dates. Contracts are organized along LME's prompt date (or delivery date) structure. Carry trades involving Aluminium futures also have reduced minimum tick sizes at $0.01 per tonne. LME prices have minimum tick sizes of $0.50 per tonne (or $12.50 for one contract) for open outcry trading in the LME Ring and electronic trading on LMEselect, while minimum tick sizes are reduced for inter-office telephone trading to $0.01 per tonne (or $0.50 for one contract). The contracts prices are quoted in US dollars per tonne. The contracts require physical delivery of the asset for settlement, and deliverable assets for the contracts are 25 tonnes of Grade A copper cathode. LME Copper contracts trade on the London Metal Exchange, which began trading in the metal at the start of the exchange in 1877. This pattern of using LME futures contract prices as reference prices for physical transactions spread to other base metals in the 1970s, and for Aluminium in the 1980s. This practice started in 1966, when Zambia, Chile, and most Copper-producing countries abandoned fixed price copper contracts, and announced that they would set copper contract prices based the average monthly price of the nearest contract month LME Copper futures contract. Despite the small share of physical copper associated with LME Copper contracts, their prices act as reference prices for physical global copper transactions. Īs of December 31, 2019, LME Copper contracts are associated with 144,675 tonnes of physical copper stored in LME approved warehouses around the world, or around 0.7% of 2019 world copper production of 20.6 million tonnes. ![]() ![]() LME Copper stands for a group of spot, forward, and futures contracts, trading on the London Metal Exchange (LME), for delivery of Copper (Grade A), that can be used for price hedging, physical delivery of sales or purchases, investment, and speculation. ![]() ( September 2020) ( Learn how and when to remove this template message) Please remove or replace such wording and instead of making proclamations about a subject's importance, use facts and attribution to demonstrate that importance. This article contains wording that promotes the subject in a subjective manner without imparting real information. ![]()
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