IHS Chemical Week

Markets :: Plastics :: Polyethylene

Planned Changes to LME Contracts Should Increase Market Liquidity

1:49 PM MDT | August 6, 2007 | Ian Young

Analysts have welcomed the London Metal Exchange’s (LME) recent decision to introduce regional futures contracts for polypropylene (PP) and linear low-density polyethylene (LLDPE), running in parallel with LME’s existing global contracts (CW, Feb. 14/21, p. 25). “LME global contract prices failed to become representative as most pricing in the industry is made on a regional basis,” says Sebastian Castelli, commodities analyst at Société Générale (London). “LME has correctly addressed this situation. We...

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