What is LME aluminium?

(September 2020) LME Aluminium (or LME Aluminum in American and Canadian English) stands for a group of spot, forward, and futures contracts, trading on the London Metal Exchange (LME), for delivery of primary Aluminium that can be used for price hedging, physical delivery of sales or purchases, investment, and speculation.

Which companies use LME aluminium contracts to hedge aluminium prices?

Notable companies that use LME Aluminium contracts to hedge Aluminium prices include General Motors, Boeing, and Alcoa.

How is all-in aluminium price determined?

Each of the reference prices published by the London Metal Exchange is derived directly from trading and provides transparent pricing for the global metals market. However, all-in aluminium price is not only determined by LME Official Prices. Premiums play a significant part of the total aluminium price.

What is the quality of the metals that underpin the LME?

The quality of the metals that underpin the LME’s contracts is strictly controlled and these specifications are updated from time to time to ensure that the contracts best serve industry needs. The LME remains a terminal market in which every contract assumes a commitment to deliver or take delivery of metal.