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First traded on LME: 1992
Current contract introduced: October 1992
World production: 8,751,100 tonnes per annum (2007)
The qualities that make the primary metal so successful, have also led to the production of over 100 grades of aluminium alloys, where various amounts of other metals are combined with aluminium to give strength and specific characteristics for a particular use. The LME contract reflects grades used in the production of automotive engine parts, but is equally suitable as a risk management tool for other alloys when they are priced basis a discount or premium to the LME contract. Many alloys are produced from recycled material. The environmental advantages of this recycling activity combined with aluminium’s inherent benefits is likely to see aluminium alloy assume an even more significant market in tomorrow’s world.
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