Home > News > UK

LME considering aluminum scrap contract

Tuesday, Jun 09, 2020

   The London Metal Exchange (LME) is reportedly planning new contracts for low-carbon emissions aluminum and for aluminum scrap.

  A six-paragraph June 5 Reuters item indicates the low-carbon LME contract is being designed to help aluminum users source “low-carbon aluminum, which is typically produced with hydro power or other forms of renewable energy.”
  That contract could help producers meet sustainability goals, and possibly avoid over-reliance on primary aluminum made in China. According to Reuters, about half of global primary aluminum supply “is produced in China, where power is mostly generated by coal-fired plants.”
  The same news item reveals the LME also is planning to launch a contract for aluminum scrap. That contract also could have a sustainability peg, since aluminum “can be recycled using a fraction of the electricity of creating new metal,” says Reuters.
  The aluminum industry has long touted recycling as an energy-saving technique, sometimes using a figure of 95 percent energy savings compared to the mining-to-finished aluminum production chain. That factoid has left some recyclers wondering why scrap and secondary alloys do not trade at more of a premium to prime product, since the energy savings they provide should offer a significant margin.

Recommended exhibitions

Notice of Postponement of ALUMINIUM CHINA & Lightweight Asia
Notice of Postponement of ALUMINIUM CHINA & Lightweight Asia 2020......
China Lightweight Vehicle Summit 2018
China’s automobile industry development has faced with enormous pressure on energy and environmental protection. In ord......
Aluminum company promises to hire 550 in heart of Appalachia
An aluminum company says it will build a $1.3 billion plant in the heart of Appalachia, promising to hire 550 people and......
Aluminium China 2017 to Drive Industry Transformation in Lig
This year’s Aluminium China in Shanghai from 19-21 July is set to mark a new period of growth in the aluminium industry......