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German firm to start metal trading platform for spot deliveries
July 25, 2016 / 6:15 PM / a year ago

German firm to start metal trading platform for spot deliveries

HAMBURG, July 25 (Reuters) - Newly-established German company Metalprodex GmbH said on Monday it planned to start a trading platform for the buying and selling of base metals for immediate physical delivery.

The aim is to start offering an electronic trading platform in September which can provide delivery of physical metal within two days, Metalprodex managing director Janko Linhart said. No exact start date has yet been set.

The platform aims to offer an additional service which is not available on markets such as the London Metal Exchange, Linhart said. It would not be aimed at financial investors.

“We aim to offer a platform for physical trade when the buyers really need the metal now,” Linhart said. “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.”

Market participants will provide the metals traded, he said. There will be no short selling and sellers will have to have metal they are selling available immediately, he said.

He said the initial focus would be on aluminium, copper, lead and zinc in standard 25-tonne lot sizes.

The main locations for delivery will include Rotterdam, Hamburg, Szczecin, Barcelona, Genoa and Istanbul.

Metal producing companies, recycling smelters, metal consuming industries, traders and warehouses have already expressed interest, he said.

No names of likely trading participants are being revealed. Dutch warehousing company C. Steinweg will provide warehousing services.

Trading will be in euros and prices will be set regionally, Linhart said. (Reporting by Michael Hogan, editing by Jane Merriman)

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