The video examines the structure and core functions of the London Metal Exchange (LME), including price discovery, trading operations, risk management and hedging strategies. It also outlines the historical development of metals trading and explains how exchange-based pricing mechanisms influence physical markets. The objective is to clarify the operational framework of the LME and its relevance for companies active in secondary raw materials and metal recycling.
According to published data, the LME traded 191 million lots in the past year, representing a notional value of approximately US$21 trillion and four billion tonnes. Market open interest reached a high of 2.1 million lots.
In the video, BIR Academy Co-chair Murat Bayram speaks with Christian Mildner, Head of Corporate Client Development at the LME, James Macdonald, Head of Trading Operations, and Yang Liu, Head of China Client Development. The discussion addresses contract structures, trading processes and the role of the LME in supporting hedging activities for recyclers operating in volatile commodity markets.
The LME serves as a reference point for pricing non-ferrous metals including copper, aluminium and nickel, which are widely traded in both primary and secondary markets. For recycling companies, exchange-based price benchmarks are central to contract negotiations, inventory valuation and risk management strategies.
Against the backdrop of rising demand for battery metals and other industrial raw materials linked to electrification and renewable energy technologies, recycled metals are expected to play an increasing role in global supply chains. Market transparency and understanding of pricing mechanisms are therefore becoming more important for companies operating within the circular economy.
BIR announced that further Academy videos addressing additional market and policy topics will be released on a rolling basis.
