Basell steps down from LME plastic committee

24-Jun-05

Basell, a major global supplier of PP and PE, concerned over the nature of the futures contracts for PP and LLDPE has quit the London Metal Exchange Plastics Committee, trading at the LME from May 27. Basell's cause for quitting the LME is speculated to be its grief that the plastics contracts are being traded only on a one-month-forward basis contrary to metals that have daily spot contracts and probably the assumption that the six-month shelf life for polymer delivered against the LME contracts is too short. Basell may, however, continue consultation with the company on a one-to-one basis.