Aluminium Commodities

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World production: 44.6 million tonnes (2011) Despite being the most abundant metal on earth (in its raw state of bauxite), aluminium used to be considered a precious metal. Only once the processes of extraction and smelting were made more efficient and electricity became cheaper and more readily available did aluminium become what it is today – the most extensively used non-ferrous metal in the world and the most liquid contract traded on the LME. Aluminium is extremely light, pliable, has good electrical conductivity and is resistant to corrosion. It is used in a wide variety of products: cans, foils, window frames, car body panels,wiring and kitchen utensils. World aluminium production 2011 Region | % | Asia | 55% | Europe | 20%…show more content…
Exercise will result in two futures contracts, one at the strike price and the other at the Monthly Average Settlement Price (MASP). The effect is to generate a cash settlement which is settled on the second business day after the declaration day for the TAPO month | Settlement type | Financial | Trading venues | Ring, inter-office telephone and LMEselect (as a hedged option only) | * LMEswaps LMEswaps are financially settled LME futures contracts based on the Monthly Average Settlement Price (MASP) of the relevant metal. Contract code | OAD | Contract months | Monthly out to 63 months | Price quotation | US dollars per tonne | Clearable currencies | US dollars | Averaging period | The number of business days in a calendar month | Final settlement day | Two business days after the averaging month | Settlement price
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