London Mental Exchange (LME) is located at 56 Leadenhall Street in the City of London. It is one of the most famous mental exchanges in the world. It is the futures exchange with the world’s largest market in options, and futures contracts on base and other metals. Here we are glad to share the splendid history of it.
In the mid-19th century, the United Kingdom is the world’s most developed industrial countries and also the world’s largest tin and copper-producing countries. Industrial demand is growing as time goes on. The UK’s resources are already stretched to the limit. It is an urgent to import industrial raw materials from abroad mines. At that time, as there was no fixed arriving time of the ore freighter which needs to import mental cross the ocean, the metal price fluctuation is very big, leading metal merchants and consumers facing huge risks. So, in 1877, some metal trading businessman set up the London Metal Exchange, establishing a standardized transaction rules.
At first only copper was traded. Lead and zinc were soon added but only gained official trading status in 1920. The exchange was closed during World War II and did not re-open until 1952. The range of metals traded was extended to include aluminum (1978), nickel (1979), tin (1989), aluminum alloy (1992), steel (2008), and minor metals cobalt and molybdenum (2010). The exchange ceased trading plastics in 2011. The total value of the trade is around $US 11.6 trillion annually. As the LME offers contracts with daily expiry dates of up to three months from trade date, along with longer-dated contracts up to 123 months, it also allows for cash trading. It offers hedging, worldwide reference pricing, and the option of physical delivery to settle contracts. In July 2012, LME’s shareholders voted to sell the exchange to Hong Kong Exchanges and Clearing for £1.4 billion.
With a history of more than 130 years, we will all thank LME for its great contribution to the world mental market. Amisy copper wire granulator is also willing to do our little effort to the world copper granulation business.