Consequently, the LME acts as a barometer of supply and demand for metals worldwide and its official prices are used by industry as the basis price for contractual purposes. These prices can in turn be protected by hedging on the Exchange through a variety of futures and options contracts.

How are LME prices calculated?

The LME Official and Settlement prices, are based on trading activity on the Ring. ... The LME Asian Reference Price is calculated using the volume-weighted average of trades transacted on LMEselect during the most liquid period of Asian trading hours.

What is LME pricing?

The LME Official Price is used as the global reference for physical contracts. The LME Official Settlement Price is the price at which all LME futures are settled.