The London Metal Exchange (LME), which has traded only metals since it opened in 1877, moved a step closer to the May 27 launch of plastics futures, as it listed the brands and warehouses acceptable against its contracts. The LME has announced the first polymer producers to gain approval for their materials to be listed on the exchange, revealing the prime supporters of futures trading in polypropylene (PP) and linear low density polyethylene (LLDPE). The approval allows these companies to settle their futures trades by delivering their materials if they choose, instead of through financial settlement. Other companies can also use these producers' LME-approved brands for settlement.
The LME has approved brands from 4 linear low-density polyethylene (LLDPE) producers and 5 polypropylene (PP) manufacturers for delivery. Dow, Reliance, Innovene Europe and Thai Polyethylene Co Ltd were listed for LLDPE
US-based Dow Chemical Co, the world's second largest polyolefin producer, India's Reliance Industries Ltd, the UK's Innovene Europe Ltd, Thai Polypropylene Co. Ltd. and Chemopetrol a.s. of the Czech Republic were listed for PP.
The LME also approved C. Steinweg-Handelsveem BV in Rotterdam and C. Steinweg-Handelsveem (FE) Pte Ltd and Henry Bath Singapore Pte Ltd in Singapore as delivery points. Houston in the US is also likely to be approved as a delivery location before first deliveries scheduled to take place before September.
The LME has plans to trade in plastics futures- low and high-density polyethylene (LDPE and HDPE) as well as bottle-grade PET (polyethylene terepthalate), if the first two are a success.
Reliance Industries is Asia's largest manufacturer of polypropylene (PP), and among with world's top 8 producers. It has a combined capacity of over 1 million tons, holding 70% of the Indian market, and catering to 3% of the global PP consumption
16-May-05 
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