How will the plastics contracts change from 28 April 2008 as a result of the changes that have been announced?
The London Metal Exchange (LME) will make changes to its plastics futures contracts for polypropylene (PP) and linear low density polyethylene (LL) which will align the plastics futures contracts with the successful metals futures contracts model. *Changes to the contracts will be introduced from 28 April 2008 and will apply to the regional and the global contracts. Following a recommendation from the LME Plastics Committee, and a decision by the LME Board, the Exchange will introduce the following changes: The contracts will move from a free on truck (FOT) contract basis to an in-warehouse basis, as used for LME non-ferrous metals. It will no longer be necessary for the party placing the material on warrant to pay the cost of loading the material from the warehouse onto a flatbed truck for outward delivery. This will be the responsibility of the party taking up the warrant through the clearing mechanism. The shelf life for LME Plastics Warrants will be removed to facilitate greater li
