The Bureau of International Recycling (BIR) has released a new educational video titled “Understanding the LME” as part of its BIR Academy “More Knowledge Together” series. The initiative aims to strengthen industry knowledge, clarify complex market mechanisms, and support the next generation of recycling professionals worldwide.
As the primary benchmark for global industrial metal pricing, the London Metal Exchange (LME) plays a critical role in recyclers’ operations, yet its structure and processes are often difficult to navigate. The video breaks down the Exchange’s core functions, including price discovery, risk management, hedging strategies, trading mechanisms, and the historical evolution of metals trading, offering recyclers a practical and accessible overview.
In 2025, the LME traded 191 million lots, representing a notional value of US$21 trillion and 4 billion tonnes, with open interest peaking at 2.1 million lots. Against this backdrop of scale and complexity, the video provides expert insights to help recyclers operate more effectively in volatile market conditions.
The episode features commentary from BIR Academy Co-chair Murat Bayram, alongside senior LME executives including Christian Mildner, James Macdonald and Yang Liu, who share firsthand perspectives on how the Exchange functions and supports global metals trading.
BIR President Susie Burrage OBE highlighted the relevance of the topic, noting that recyclers rely heavily on the LME for pricing, trade execution and hedging across materials such as copper, aluminium and nickel. She added that understanding the LME has become essential as recycled metals play an increasingly vital role in meeting demand driven by the global transition to green technologies.
With demand for critical metals such as nickel, lithium, cobalt and copper expected to outpace mining capacity, recycled metals are positioned as a key solution, reducing both supply constraints and environmental impact. In this context, a working knowledge of the LME is no longer optional, but fundamental to participation in the circular economy.
