Metalprodex GmbH, a newly launched German company, has opted to initiate a base metals trading platform for immediate physical delivery – the group has unveiled ambitions to begin offering its new platform as early as September, which aims to provide delivery of physical metal within two days.
The industry and demand for immediate physical delivery of base metals has been on the rise in 2016, with the price of precious and industrial metals in flux. Such services have caught fire with traders, serving as a viable alternative to traditional options. Metalprodex is also setting its sights on the London Metal Exchange (LME) for its service offering, which currently lacks any such physical trading in such a time sensitive manner.
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Metals on Demand
These goals were echoed by Metalprodex’s Managing Director Janko Linhart whose goal is to oversee the delivery of physical metals within two days. According to Linhart: “We aim to offer a platform for physical trade when the buyers really need the metal now. This sort of physical trade is currently undertaken by telephone, email or fax or even over a beer. We will offer a transparent platform for metal trades needing spot delivery.”
As such, market participants will provide the metals traded, he reiterated. Metalprodex will initially be targeting aluminum, copper, lead and zinc in standard 25-tonne lot sizes across such locales for delivery as Rotterdam, Hamburg, Szczecin, Barcelona, Genoa and Istanbul.
The initiative has already gotten off the ground, fueled by interest from multiple venues and metal producing companies, including a composite of recycling smelters, metal consuming industries, traders and warehouses.