TM
Trading
We are Registries at the LME (London Metal Exchange)
We do not trade in all non-ferrous products, as this is a very broad field. Our focus is on products for which we have reliable suppliers, since suppliers are the key element of every transaction. We operate strictly according to the generally accepted rules governing metal trading. Almost all metals are traded on exchanges, which determine both purchase and selling prices. Any transaction outside official quotations is unrealistic — not to say a fraud or deception of the buyer. Unfortunately, there are many today who offer attractive prices and flexible payment terms. Serious suppliers never request any kind of advance payment; that is why specific financial instruments are used in international trade, such as documentary letters of credit, standby letters of credit, and bank guarantees. We work exclusively with these payment instruments.
We are focused on several products: Copper cathodes, Copper scrap, and Aluminum. For these products, we have strong and reliable suppliers. We cooperate with some of the world’s largest producers of copper cathodes — all of them manufacture branded cathodes, which means that a premium is added to the LME quotation to determine the selling price. We are more oriented toward non-branded cathodes, where a discount is applied to the LME price, as explained on the “Copper Cathode” page. These cathodes have slightly lower purity, but that depends on the industry in which they are used (for example, in the production of copper tubes, fittings, etc.).
Metal trading can take two forms: physical trade, where the buyer purchases and receives the goods, and exchange trading on the LME, where traders buy and sell “contracts” without physical delivery. We also engage in this type of “speculative” trading to hedge against sudden price fluctuations. Unfortunately, metal trading is influenced by geopolitics (tariffs, sanctions, and similar factors).
As in any trade, there is a standard procedure leading to the completion of every transaction — see the “Procedure” page. Contracts are based on LME rules and established industry practices. They include a precise definition of the goods, payment terms, arbitration clause, and all other elements that constitute a proper trade agreement.
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If you click here, you will be taken to the page with the complete draft Sales and Purchase Agreement (SAP) and the draft Documentary Letter of Credit that accompanies the SAP. You can download it in Word format and use it.
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Trading on the London Metal Exchange (LME) is conducted through three main platforms: electronic trading (LMEselect), open outcry in the Ring, and the 24-hour telephone market. Participants use these venues to trade futures, options, and other contracts in non-ferrous and ferrous metals, with LME prices serving as the global benchmark
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How Trading Works on the LME​
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Trading Venues​
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The Ring (open outcry): A traditional trading floor in London where brokers physically shout bids and offers.
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24-hour telephone market: Allows continuous trading across global time zones.
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LMEselect (electronic platform): The primary modern system for trading metals electronically.
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Contracts Available
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Futures
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Options
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TAPOs (Traded Average Price Options)
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Monthly Average Futures
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LMEminis (smaller contracts for retail/hedging purposes)
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Purpose of Trading
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Hedging: Industrial users and producers hedge against adverse price movements.
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Speculation: Traders and funds speculate on price changes.
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Price Discovery: LME prices are used worldwide as the reference for physical contracts.
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Scale of Trading
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Around 176–178 million lots annually, equating to $13–18 trillion notional value.
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Trading volume often exceeds global metal production by a factor of 40, highlighting its role as a financial market
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Metals Traded
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Non-ferrous: Copper, aluminum, zinc, lead, nickel, tin
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Ferrous: Steel scrap, steel rebar
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Precious & EV metals: Cobalt, molybdenum, lithium
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Regulation
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The LME is regulated by the UK’s Financial Conduct Authority (FCA), ensuring transparency.
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Key Features
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Daily settlement prices are published and used globally in contracts.
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Warehouse network: LME-approved warehouses worldwide provide delivery points for physical settlement.
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Ring trading sessions: Twice daily, with official prices set during these periods.
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Websites:
