LONDON METAL EXCHANGE EXPECTS CONTRACT APPROVAL

LONDON METAL EXCHANGE EXPECTS CONTRACT APPROVAL

The London Metal Exchange is expected to approve the listing of a secondary aluminum contract at its monthly board meeting today, according to senior LME sources. This is being done despite continued opposition from some quarters of the secondary aluminum industry.

The LME's Secondary Aluminum Committee recommended that the LME introduce secondary aluminum trading at the LME's January board meeting.But this was overruled and the board instead decided to issue "precise details" of the contract to allow a period of final consultation with the industry.

Some members of the LME were said to be furious about that decision.

"I don't know why they don't just get on with it," an official close to the exchange said at the time.

The Secondary Aluminum Committee will again be recommending acceptance of the contract, Ralph Kestenbaum, chairman of the sub- committee said.

Mr. Kestenbaum said the committee had received "constructive comments" during the final period of its consultations, which could lead to some improvements in the proposed contract.