LME introduces rule changes recommended by plastics committee

08-Aug-06

The London Metal Exchange, UK, has announced rule changes for polypropylene and linear low density polyethylene, with effect from 31 August 2006. The Exchange's plastics committee has reviewed the time allowed for material to be placed on warrant and concluded that the current limit of the production month plus two months (M+2) should be extended to plus four months (M+4). In addition to this, the committee concluded that material deposited at a Listed LME Warehouse Company within the M+4 months limit can only be warranted up to the 18 months from the month of production (before the end of M+17). With regards to the time limit for re-warranting plastics, the committee has said that material at a Listed LME Warehouse Company under cancelled warrant can be held until it is 18 months from production (M+17). At this stage, it must be re-warranted or treated as delivered since it would no longer be eligible for warranting.