1, luntong refers to London copper, also known as LME copper. LME is the world's largest copper futures trading market, established in 1876. Trading varieties are copper, aluminum, lead, zinc, nickel and aluminum alloy. Futures trading begins at 1877, and there are two kinds of copper traded: negative grade copper: A grade copper; Copper bar: The specification standard is Grade A copper, and the weight is between 1 10- 125 kg. Among them, the trading of cathode copper is the most active. All delivered copper must have Grade A copper approved by the London Stock Exchange, which conforms to the British BS 6017-1981standard classification specification. LME is short for London Metal Exchange, and LME copper is now quoted by spot copper of London Metal Exchange.
2. Price impact: The price and inventory of the London Metal Exchange have a very important impact on the production and sales of non-ferrous metals worldwide. /kloc-In the middle of 0/9th century, Britain was once the largest producer of tin and copper in the world. With the passage of time, industrial demand continues to grow, and Britain urgently needs to import a large number of industrial raw materials from foreign mines. At that time, due to the irregular arrival time of freighters crossing the ocean to transport ore, metal prices fluctuated greatly, and metal traders and consumers were faced with great risks. 1877, some metal traders established the London metal exchange and established standardized trading methods. Since the beginning of this century, the London Metal Exchange has publicly released its trading price, which is widely used as the quasi-price of world metal trade. 70% of the global copper production is traded according to the official quotation published by the London Metal Exchange.
Three. Liquidation rules: all liquidation of LME is completed through London Clearing Company. Every transaction is aimed at London Clearing Company. Therefore, for example, if A sells 20 lots of zinc contracts to B (the contract price has been matched), then each single transaction will be replaced by selling 20 lots of zinc contracts to London Clearing Company through A and selling 20 lots of zinc contracts to B through London Clearing Company. London Clearing Company has no net position, but A doesn't have to worry about B's credit risk, and B doesn't have to worry about A's credit risk. Party A and Party B shall deposit a deposit with the London Clearing Company, and the amount of the deposit can roughly represent the maximum daily change of the contract amount that can be expected by the management of Taiwan Province. The daily contract changes according to the market price, that is, the contract value is recalculated according to the daily closing price 17: 00LME. If the deposit is lower than the contract value, the deposit must be replenished to the amount that can represent the guaranteed deposit again to the satisfaction of the clearing company.