LME decision to exit plastics doesn’t shake confidence in steel
Oct 22, 2010 | 01:29 PM
The London Metal Exchange's decision to delist its plastic contracts is unlikely to shake market confidence in newer contracts, the exchange said.
Plastic futures trading, which was introduced on the LME in May 2005, will end on April 29 next year after members withdrew support for the contract (AMM, Oct. 21).
However, new contracts like the steel billet contract, introduced in 2008, are more actively traded and shouldn't suffer the same fate, Chris Evans, head of business development at the LME, told AMM. "There is no worry about the steel contract," he said. "The two contracts are very different and perform very differently. We see daily trading in steel. We see steel moving in and out of the warehouse. We see active member participation. And we see growing meaningful adoption in the physical steel business. None of those elements were true for plastic."....
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