The London Metal Exchange (LME) announced Thursday it had registered during the year 2011 a record number of transactions. The rate of increase was 22%. Main reasons for this phenomenon: the high price volatility. The London Metal Exchange has seen lots of exchange 146.6 million in 2011, which means that 3.5 billion tons of metal were the subject of financial transfers.
Recall that the LME controls 80% of trade in industrial metals in the world. All of the contracts traded during the last year represented a value of 15,400 billion, up 32.8% over 2010. The exchanges have been greatly boosted by high price volatility.
Tonne of copper has posted a record high in February - then exchanging 10,000 dollars - then to lose more than a quarter of its value. Meanwhile, tin exceeded 33,600 dollars per tonne in April, after tumbling by 40% throughout the year.Recall that the LME controls 80% of trade in industrial metals in the world. All of the contracts traded during the last year represented a value of 15,400 billion, up 32.8% over 2010. The exchanges have been greatly boosted by high price volatility.
Thus, even if that last October, the prices of base metals traded on the London Metal Exchange have fallen sharply, losses and was even very important. Overall the market remains extremely volatile, reacting to the mercy of the waves excited by the financial storm now raging in the euro zone, especially in Greece.
Concerns about the strength of global demand remains important, investors worrying about the information contained in the various indicators from the United States and China, while countries should be global growth in view of their place within the first few economies in the world.
Note also that the LME will launch from the January 23 contracts on all non-ferrous metals, called "LMEswaps". These should enable investors to make a cover (hedging) to hedge against price changes.
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