Metalshub started a collaboration agreement with the London Metals Exchange in 2021
As the metal industry’s digital supply chain solution, Metalshub has formed a strategic collaboration with the leading exchange for industrial metals, the London Metal Exchange (LME).
The collaboration has expanded Metalshub’s offering to LME traded base metals such as aluminium and copper. Moreover, Metalshub and the LME have joined forces to provide a solution to the industry for tracking the CO2 footprint of metal products throughout the whole supply chain.
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“We are delighted to be collaborating with Metalshub to develop and deliver digital supply chain services to our global industrial user base. Physical metals trading needs are increasingly being met with digital solutions, which offer benefits such as transparency, efficiency and easily evidenced compliance with procurement requirements.
As the global centre for industrial metals futures trading, the LME is well-positioned to expand the Metalshub product base and develop its direct connectivity with the physical market.”
Robin Martin, LME Head of Market Development
“We share common values and a common vision for the future with the LME. Metal markets have to become more transparent and with it digital. Together with the LME we are providing a digital trading venue for non exchange traded physical commodities and help to create transparency in otherwise opaque markets.
We are also working together on limiting global warming by providing the digital infrastructure for audit proof digital evidence of the CO2 footprint of a metal product. The LME passport system is a great example of bringing digital certificates into the Metalshub solution.
Dr. Frank Jackel, Co-Founder of Metalshub
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"Green" nickel initiative with LME
Nickel is a strategic raw material for the green energy transition, vital for electric car batteries, as well as for stainless steel production. This means sourcing metals for a green economy must also adhere to the decarbonisation goal across the entire supply chain. As part of the "green" nickel initiative with the LME, Metalshub aims to introduce a Low Carbon Class 1 Nickel Premium Index (European Duty Paid) when a sufficient number of transactions is reached.
Through cooperation and engagement with the LME and market participants, the LME and Metalshub have determined that the Nickel Institute’s GHG Emissions Guidance (leveraging GHG Protocol and ISO 14044) is the appropriate initial method for assessing carbon footprint, with 20 mt of CO2 or less as the suitable low-carbon threshold.
As of now, Metalshub is reporting monthly on the volume of Class 1 Nickel traded with a registered carbon footprint lower than 20 tonnes of CO2 equivalent per tonne of material.
Traded volume of Class 1 Nickel on Metalshub
| Month | Traded Nickel Class 1 Volume (mt*) | Low Carbon Ni offered (mt*) | Traded Low Carbon Ni (mt*) |
|---|---|---|---|
January | 4,399 | 0 | 0 |
February | 2,375 | 4 | 4 |
March | 2,126 | 27 | 0 |
April | 1,805 | 171 | 0 |
May | 1,991 | 216 | 144 |
June | 5,955 | 1 | 1 |
July | 1,013 | 264 | 168 |
August | 734 | 13 | 0 |
September | 1,041 | 16.9 | 120 |
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