LME To Add Zinc Jumbos As A Deliverable Shape

The London Metal Exchange amend the Special Contract Rules to include the addition of Jumbos as a deliverable shape, with effect from 27th October 2023, for the Special High Grade Zinc Contract.

‘Summary

SPECIAL CONTRACTS RULES – ADDITION OF ZINC JUMBOS AND OTHER ADMINISTRATIVE AMENDMENTS

1. This Notice advises Members and other interested parties of amendments to the LME’s Special Contract Rules. The changes include: (i) adding jumbos as a deliverable shape for the Special High Grade Zinc Contract; and (ii) a number of minor administrative amendments including to the names of certain metal standards.

Definitions

2. All the terms capitalised in this Notice shall have the meanings ascribed to them in the Rules and Regulations of the LME (the “LME Rules”) unless otherwise specified.

Addition of new deliverable shape

3. Following extensive market engagement, the LME has taken the decision to add jumbos as a deliverable shape for the LME Special High Grade Zinc Contract. Jumbos have become more prevalent in the zinc industry making up approximately 50% of the Special High Grade Zinc (SHG) market today. Incorporating jumbos into the Special High Grade Zinc Contract specification expands the zinc market of last resort, improves financing conditions for metal owners and may also increase liquidity in the Contract. From the multitude of available zinc jumbo shapes used regionally, the LME has retained a standard jumbo shape that is consumable in all key zinc-consuming areas.

4. With effect from 27 October 2023, the LME is hereby amending the Special Contract Rules to include jumbos as a deliverable shape for the Special High Grade Zinc Contract. The amendments are set out in Appendix 3 (amendments shown in redline). Further details of the requirements for this shape are detailed in the LME Rules.

Updates to metal standards

5. With effect from the date of this Notice, the LME is hereby amending the Special Contract Rules to reflect a number of administrative changes as set out in Appendix 1 and 2 (amendments shown in redline and clean respectively)1.

6. Amongst other minor amendments the LME has updated the names of the following standards:

High Grade Primary Aluminium

Primary aluminium with impurities no greater than in the registered designation P1020A in the North American and International Registration Record entitled "International Designations and Chemical Composition Limits for Unalloyed Aluminium" (revised March 2007) – updated to January 2018.

Copper Grade A

BS EN 1978:1998 (cathode grade designation Cu-CATH-1) – updated to 2022.

ASTM B115-10 (cathode Grade 1) – updated to 2021.

Lead

ASTM B29 03 (2014) Standard entitled “Standard Specification for Refined Lead” – Permitted grades: 99.97% and 99.995% - updated to 2019.

Primary Nickel
ASTM B39-79 (2013) – updated to 2023.

Special High Grade Zinc

ASTM B6-12 entitled “Standard Specification for Zinc”, LME grade – updated to 2023.

General

7. Any interested parties with queries in respect of this Notice or any brand producers wishing to register jumbos as an additional shape, should contact the LME by email physicaloperations@lme.com.

Liz Sullivan
Deputy Head of Physical Operations

cc: Board directors, Lead and Zinc committee, Physical Markets committee Warehousing committee