LME reports healthy trading volumes in Q1

The London Metal Exchange (LME) average daily volumes (ADV) of contract trading in the first quarter of this year increased by 5.9 percent compared with activity in the first quarter of 2024.

The first quarter of 2025 registered the second-highest quarterly ADV in the last 11 years, while March saw the third-highest monthly ADV in the last 10 years, according to the exchange.

LME nickel ADV was up by 28 percent compared with one year earlier, following what LME called a "strong" 2024, when annual ADV increased for nickel by 58.8 percent compared with 2023.

Trading on the LME nickel contract has demonstrated a rebound in volume since that market seized up in 2022 following severe volatility.

Nickel trading was not the only riser in early 2025, however. LME says ADV for its tin contract was up by 22 percent compared with the first quarter of 2024, and LME copper ADV rose by 10.6 percent compared with early last year.

“This has been another strong quarter for the LME, driven by an ever-widening set of participants accessing the market,” says Matthew Chamberlain, CEO of LME.

“With increasing global focus on both the opportunities and challenges in the base metal complex, we remain committed to enhancing market liquidity for both physical and financial users, including through the successful launch of our new trading platform and the forthcoming outcome of our Enhancing Liquidity White Paper."

Among six contracts singled out by LME in its first quarter 2025 statistical portrayal, ADV for lead was the only one to see a reduction compared with the prior year. Trading volume for that metal fell by 2.8 percent early this year compared with the first quarter of 2024.

Joining nickel, tin and copper with busier ADV were zinc, rising by 3.3 percent, and trading in the LME’s highest-volume nonferrous metal, aluminum, which rose by 1.2 percent.

“With LME volumes in the quarter at their second highest for 11 years, and nickel ADV in March at its highest level in five years, we are grateful to our members and clients for their continuing support,” Chamberlain says.

According to the exchange, the LME Steel HRC FOB China (Argus) contract continued a strong run that started midway through 2024, and the first quarter of 2025 saw the second highest ADV, up by more than 500 percent from the first quarter of 2024.

March also represented the third-highest month for the LME Steel Scrap CFR Turkey (Platts) contract, with an ADV of 5,177 lots, according to LME.