The London Metal Exchange (LME) has announced a notable surge in trading volumes for 2024, with a significant 18.2% increase in average daily volume (ADV) across futures and options contracts. Reaching nearly 665,000 lots, this marks the fourth-highest ADV in the exchange’s history, reflecting strong market engagement and a rising appetite for trading in key metals.

Nickel and Tin Contracts See Major Increases

The LME’s nickel contract was one of the standout performers, with trading activity increasing by almost 59% compared to the previous year. This growth highlights the rebound of nickel to levels seen in 2021, driven by strong demand in industries such as batteries and stainless steel production. Additionally, the LME’s tin contract saw an increase in ADV by 26%, which indicates healthy market interest, particularly as tin plays a critical role in electronics and soldering.

Ferrous Scrap Contracts Continue to Gain Traction

Another area of growth for the LME was its ferrous scrap contracts. The exchange saw a robust 48% increase in trading volumes tied to its Turkish-destination Platts price-pegged contract. Similarly, the LME’s contract for Chinese-bound cargoes, pegged to an Argus price, experienced a remarkable 185% rise in volumes year-over-year. The latter contract’s ADV surged by an extraordinary 735% in the fourth quarter of 2024 compared to the same period in 2023, underscoring a heightened interest in steel scrap from China.

Aluminum, Copper, and Zinc Maintain Strong Performance

LME’s aluminum and copper contracts remained among the most active, showing consistent growth in 2024. Aluminum ADV increased by 15.8%, while copper saw a 10% rise, with both metals benefiting from stronger market sentiment in the wake of their pivotal roles in renewable energy, infrastructure, and electric vehicle production. Zinc, as the third-most traded metal on the exchange, also saw a 15% increase in ADV, while lead saw similar growth.

Sustainability and Transparency Gains Momentum

A key development in 2024 was the significant increase in sustainability disclosures via LMEPassport. Over 265 brands now report sustainability metrics on the platform, a 20% increase from the previous year. In total, the LME reported 692 sustainability disclosures, representing a 43% rise. This growth signals the increasing importance of sustainability within the metals market, with companies emphasizing eco-friendly practices and transparency in their supply chains.

Optimistic Outlook for 2025

LME CEO Matthew Chamberlain expressed confidence for the exchange’s prospects in 2025, noting that the strong market volumes across metals and the rising importance of sustainability place the LME in a strong position for continued growth and innovation. He emphasized that the LME’s diversified product offerings, including increased activity in ferrous and non-ferrous metals, along with its sustainability efforts, would drive the exchange forward into the next year.