CME Is Planning An Aluminum Contract, Beware LME

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CME Group Inc. is planning a new aluminum futures contract to challenge the LME’s.

“The market really wants an alternative,” Harriet Hunnable, CME’s managing director of metals, said in London today (Bloomberg). “The aluminum market is a large one and needs a new futures contract. It’s a market that today appreciates price transparency. We can deliver that and good liquidity.”

The Indian aluminum cash price saw the biggest decline of the day, dropping 1.9 percent to close on Monday, October 7. On the LME, the primary aluminum cash price gained 0.2 percent to finish at $1,789 per metric ton. The 3-month price of aluminum showed little movement yesterday on the LME at $1,831 per metric ton.CME Planning Aluminum Contract to Compete With LME.

The Indian aluminum cash price saw the biggest decline of the day, dropping 1.9 percent to close on Monday, October 7. On the LME, the primary aluminum cash price gained 0.2 percent to finish at $1,789 per metric ton. The 3-month price of aluminum showed little movement yesterday on the LME at $1,831 per metric ton.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap saw little movement. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat. For the fifth consecutive day, the price of Chinese aluminum bar held flat. The Chinese aluminum cash price was unchanged.