LME takes sustainability premium step

The London Metal Exchange (LME) says it is working with fellow Hong Kong Exchange (HKEX) Group sister company Commodity Pricing and Analysis Limited (CPAL) to move forward on the publication of sustainable metal premium pricing for LME-approved metals.

LME cays its confirmed pricing methodology is now available on a newly launched LME Insight website, through which news and pricing will be distributed.

Organizations representing different types of metal, including aluminum, copper, nickel and zinc, have established their own parameters of what defines a sustainable production benchmark. In a 22-page document outlining carbon emissions aspects of copper production, the International Copper Association does not go into depth on the benefits of recycling, but indicates, “This guidance applies to all copper production routes, thus pyrometallurgical, hydrometallurgical and recycling (also called secondary) routes are included in the scope.”

HKEX Group and LME announced the formation of Dubai-based CPAL last October as a new group subsidiary to serve as a sustainability premium pricing administrator.

The group say the LME Insight website, which went live in early February, “provides metal markets news and analysis with a focus on transition metals and related industries,” adding, “Pricing is expected to launch later this year and will also be available through LME Insight.”

Bashar Mohamadieh has been appointed as General Manager of CPAL and will be joined by a staff engaged in price reporting, governance and compliance, says LME.

“We are now firmly on course to see sustainable metal premium price discovery come to fruition,” says  Georgina Hallett, LME chief sustainability officer and head of physical markets.

Comments Mohamadieh, “This marks an important milestone for the project and the metals industry, and I am pleased to lead the delivery of LME Insight as it supports the development of sustainable metals markets. Through transparent, robust pricing methodologies, we aim to facilitate credible price discovery and support the industry’s transition toward a more sustainable global metals value chain.”

Regarding its current roster of services, LME says in January 2026 the exchange achieved a record average daily volume (ADV) of more than 986,000 lots, surpassing the previous high set in April 2025 by 18 percent.

Copper trading was a standout activity, with the red metal’s contract ADV recording its highest ever monthly total at nearly 260,000 lots. The exchange says its primary aluminum contract—its most active—recorded its second highest ADV throughout January at ,pre than 356,800 lots.