Schupan Aluminum Sales
4200 Davis Creek Ct., Kalamazoo, MI 49001
Phone: 269-382-3434, Toll-free: 800-531-3434
Schupan Aluminum Sales
APRIL 2007
In an effort to better serve our customers Schupan Aluminum is now offering a monthly E-zine. This is a monthly newsletter to provide the most up to date information on the ever changing Aluminum Market.

What is the LME?










MSCI
 
The LME stands for the London Metals Exchange. It is a commodities exchange in London, England that deals with future prices of metal. The metals that are traded on this index are non-ferrous in nature and include aluminum, copper, and zinc.



The history of the London Metals Exchange can be traced back as far as 1571. Around this time is when metal traders first began to meet on a regular basis. However, it was not until 1877 that the London Metal Market and Exchange Company was formed as a result of Great Britain's industrial revolution. During this time the UK's consumption of metal increased drastically which resulted in a substantial amount of material being imported. Merchant ventures were investing large sums of money in this activity and were exposed to great risk. These voyages were not only dangerous in nature, but the cargoes they were transporting could gain or lose value by the time they reached port.
(Not much different than today!!!)

Investors began meeting in coffee houses and traded with each other to protect themselves or "hedge" their investments related to this cargo as forward contracts. The LME was formed to provide order to this activity and establish a single marketplace. Thus, the LME was born.

For more information please click here (www.lme.co.uk).

Next Issue:

When to consider a custom extrusion
vs.
machining out of standard stock.
Metal Service Center Institute