The Press and the global metal trading community have been closely following the METALPRODEX launch.
"A new global spot physical metal trading platform called Metalprodex will launch in September," managing director Janko Linhart told FastMarkets.
Headquartered in Germany, it has been developed to allow the quick purchase and sale of physical metal.
All metal is delivered physically within two days on the spot market. Metal delivered into any Metalprodex-approved warehouse can then be sold or bought instantly via electronic trading platform MTPX.
Once a deal has been completed, it is then in "lockdown" until the seller receives the money from the buyer.
The platform will allow direct market access for participants to place buy or sell orders in real time at an all-in trading price, denominated in euros.
“This is a move for us to provide easy access to a global community of approved and trusted metal traders. Importantly, metal cannot be short-sold on MTPX. Therefore all sales are backed by physically available material. There is no other physical metal exchange and it is clear that there is a demand for one,” Linhart said.
Metalprodex will initially focus on four base metals – aluminium, lead, copper and zinc – and will also trade semi-finished products in the near future. Metal will be traded in standard 25-tonne lot sizes.
Due to the platform’s physical nature, price development will be distinct to each location, with members calculating the all-in cost.
“It is important to enable regional trading so you can set a price because each region has a different demand level and varying logistics and finance costs,” he added.
Metalprodex has already received interest from major participants amongst producers, consumers, traders as well as warehouses, Linhart said. ndeed, the company has already agreed with C.Steinweg, which boasts a large global warehousing footprint, to provide warehousing services in various locations.”
The initial focus will be on Europe, with key locations in Rotterdam, Hamburg, Szczecin, Barcelona, Genoa and Istanbul. Then it will look to expand into the Middle East and India.
Due to market synergies, Linhart said that there is a possibility of tie-ups with other exchanges, while further new products and locations are expected in due course.
“That’s the benefit of being a spot market. We can be quick with new initiatives,” Linhart said.
Full Article on Fastmarkets on 25th July, by Kathleen Retourne
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)
Full Article on Reuters UK on 25th July, by Michael Hogan
Metalprodex will launch spot metal trading platform in September
Metalprodex, a new Germany-based company, will launch a global trading platform in September for the physical buying and selling of base metals, the company said.
At launch, the platform will allow participants to trade aluminium, copper, lead and zinc primary and semi-finished products on the spot market. Nickel will not be offered at launch, but may be added in future, md Janko Linhart told Metal Bulletin.
The platform is not aimed at financial investors, but instead targets the physical market.
The metals will be traded only in euros, initially, in order to remove any foreign exchange risk, Linhart said. This may change in the future, he added.
Base metals will be the focus at launch, and the four metals will be traded on a regional basis.
“We are starting with four markets which will trade regionally, meaning they can reflect regional price developments,” he said.
As a purely physical spot market, no short selling is allowed, he said, however, he did not rule out the possibility of teaming up with other exchanges offering hedging opportunities.
“It’s definitely a possibility […] Our business may be complemented by the hedging facilities of other exchanges,” he said.
The platform will provide physical metal within two days via an electronic trading system, Linhart added.
The minimum tonnage traded will be 1 lot, or 25 tonnes, and Metalprodex will offer both duty-paid and duty-unpaid options.
Members will have access to all-in prices for semi-finished and primary metal products and will be able to see price developments in real time.
It will provide regional trading at major hubs, supported by a network of approved warehouses, the company said.
Dutch warehousing company Steinweg has been signed up to provide warehousing services.
Metal can be traded in a variety of regions, allowing participants to take advantage of regional price differences, observe where demand and supply are developing and sell or buy with the highest possible trade margins, the company said.
At launch, delivery locations will be Rotterdam, Hamburg, Szczecin, Barcelona, Genoa and Istanbul, but the company will be looking to expand this offering both within Europe and worldwide, Linhart said.
Full Article on Metalbulletin on 26th July, by Fleur Ritzema
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