The need for London Metal Exchange steel contracts based on the euro rather than only the dollar outweighs the need to create a low-carbon aluminum platform, market participants have claimed.
According to media reports, a consumer said all the necessary tools for premiums on green aluminum are already available for those who support the metal’s sustainable production, which would render the new platform redundant. However, market participants noted that steel contracts based on the euro rather than the dollar still haven’t been established by the LME.
It was also noted that creating the new platform would split the liquidity of LME Aluminium contracts, which govern the trade of one of the most financially liquid metals on earth. The LME’s green aluminum platform would bring low-carbon metal produced by Russian companies, such as Norsk Hydro and Rusal, to the forefront.