London Metal Exchange Declares New Aluminum UBC Contract

SEATTLE (Scrap Monster): The London Metal Exchange (LME) announced that it plans to introduce a new aluminum scrap contract to serve the North American Used Beverage Containers (UBC) sector. In addition, it plans to launch two new regional ferrous scrap contracts. The decision is part of its efforts to transition to sustainable economy.

Earlier in June this year, the exchange had announced that it plans to introduce new contracts for low-carbon emissions aluminum. This was aimed at helping users source low-carbon aluminum and meet sustainability goals by eliminating over-dependance on Chinese primary aluminum. Also, LME had revealed its plans to launch a contract for aluminum scrap, as part of expansion of its sustainability-related contracts.

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Matthew Chamberlain, LME chief executive noted that it already provides access to contracts that are essential to growing electric vehicle (EV) sector. The recently launched contracts will support the development of sustainable production of metals. They focus on partnering with the industry in maximising the potential of metals to power the transition to a more sustainable future, he added.

The exchange offers a wide range of products that service the scrap and recycling industries. This comprises of the existing aluminum alloy and steel scrap contracts. The proposed launch of LME lithium contract will further expand the product portfolio offered by the exchange.