LME expresses satisfaction with its 2024 activity levels

The London Metal Exchange (LME) is reporting that futures and options average daily volume (ADV) in 2024 reached nearly 665,000 lots, up 18.2 percent compared with ADV in 2023 and represents the fourth-highest annual ADV on record.

The LME nickel contract experienced large increases in ADV over 2023, with activity up by nearly 59 percent year over year. Activity pegged to the LME tin contract rose by nearly 26 percent last year.

The LME also reports its ferrous scrap contracts have seen sustained volume increases, with trading against its Turkish-destination Platts price-pegged contract up by more than 48 percent last year compared with 2024.

Activity tied to another LME steel recycling contract, on China-bound cargoes pegged to an Argus price, gained momentum last year, though rising from a lower base. Trading against that contract rose by more than 185 percent year over year and that the ADV of 649 lots in last year’s fourth quarter represented an increase of 735 percent compared with late 2023.

“2024 has been a year of significant progress for the LME and this is clear from the rise in volumes across the market,” LME CEO Matthew Chamberlain says. “Nickel has rebounded back to levels seen in 2021 and our ferrous products continue to perform well as more firms manage their risk exposures through LME contracts.”

While the nickel rebound was part of the story, the exchange’s primary aluminum and copper contracts remained the most active in 2024. Those metals also attracted more attention in 2024 compared with the prior year.

Aluminum’s ADV of more than 260,000 lots in 2024 represented a 15.8 percent year-on-year rise in activity while copper’s ADV of more than 150,000 lots was a 10 percent increase compared with 2023.

Trading in zinc kept it third in line in terms of activity, behind copper and ahead of nickel. ADVs in 2024 for both zinc and lead rose by more than 15 percent compared with the prior year.

Sustainability disclosures on the exchange’s LMEPassport platform—which can have recycling implications—also exhibited double-digit growth in 2024.

According to the LME, more than 265 brands have disclosed sustainability metrics on LMEpassport, up 20 percent from October 2023 to December 2024, and there have been 692 total sustainability disclosures, a 43 percent increase from October 2023 to December 2024.

"Thanks to the support from our users, I believe the LME enters 2025 in a strong position," Chamberlain says.