Closing the London Metal Exchange ring could hinder liquidity, increase volatility, and affect pricing, and the exchange should therefore keep it open, according to the acting managing director for Minmetals (UK).
Speaking during a panel at the virtual Fastmarkets Copper Seminar, Liangmin Gu said that in Minmetals' experience, volumes to determine settlement prices had fallen significantly since the LME temporarily closed the trading floor due to the Covid-19 pandemic a year ago."Following our observation, the daily cash trading volume [using a] volume weighted average price [VWAP] method has been only about 100-200 lots, whereas the...