London Metal Exchange
The London Metal Exchange (LME) is the world’s premier non-ferrous metals market with highly liquid futures and options contracts.
The face value of contracts traded on the exchange is in excess of US$ 2,000 billion per annum. Over the years, the London Metal Exchange (LME) has developed highly successful futures contracts for non-ferrous metals
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How is LME Futures Contracts helpful?
It is an opportunity provider for all businesses in the Base Metal supply chain adding certainty to their business models.
Without a futures market in a regulated exchange, companies have to plan the price of metals without certainty. They are left with their negotiations with customers and suppliers in the market place.
Thanks to the LME, the intrinsic price risk for our clients is significantly controlled. Being an active participant in the LME, Gold Matrix Resources is able to provide a few facilities for its clients, namely: |
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Fixing raw material costs against future sales or purchase commitments |
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Locking in attractive prices |
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Anticipating seasonal price changes and fluctuations in supply and demand |
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Locking in the price of goods in inventory |
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Selling unsold production to the futures market |
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With this it is possible to enter into a contract to purchase or sell futures contracts at pre-agreed prices and so to hedge the price risk and ensure that profit margins can be controlled.
The LME Futures Contract is an important tool in risk management armoury
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