Delivery Points
As a market of “last resort”, industry can use the LME’s delivery option to sell excess stock in times of oversupply and as a source of material in times of extreme shortage. In reality, physical delivery occurs in a very small percentage of cases on the LME as most organizations use the LME for hedging purposes. However, the small percentage, which does result in delivery, plays a vital role in creating price convergence.
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Famous quotes containing the words delivery and/or points:
“There was no speculation so promising, or at the same time so praisworthy, as the United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company.”
—Charles Dickens (1812–1870)
“The men who carry their points do not need to inquire of their constituents what they should say, but are themselves the country which they represent: nowhere are its emotions or opinions so instant and so true as in them; nowhere so pure from a selfish infusion.”
—Ralph Waldo Emerson (1803–1882)