Metal Registration

Telephone: + 44 (0)20 7917 2740
Email: melaniewells@metalreg.com
  • About
  • Services
    • Services
    • Case Studies
    • FAQ
  • Testimonials
  • News
  • Resource Information
    • Useful Links
    • Articles
    • Metals Exchanges/Markets – Contact Data
    • Metals Exchanges/Markets – Physically Delivered Contracts – Specifications
    • Non Ferrous Metals Contracts
    • Precious Metals Contracts
    • Minor Metals Contracts
    • Ferrous Metals Contracts
  • Contact

THE BENEFITS OF BRAND APPROVAL

19 February, 2015

The Benefits of Brand ApprovalThe benefits of having your metal brand registered with an international exchange are considerable:-

  • it provides producers with access to a liquid and transparent terminal market and a ready outlet for any over production or excess stocks when supply is outstripping demand.
  • exchanges with a wide range of approved warehouse facilities can at times provide opportunities for financial benefits either through warrant swapping, savings of freight costs or arbitrage trading.
  • the seal of approval of a recognised exchange provides global brand recognition and acceptability which is a definite advantage to producers when they market their production.

Buyers and sellers of exchange approved brands need to have the confidence and certainty that the quality of the material that they will receive or deliver meets Contract Requirements.  To this end, brand approval is critical as it upholds the integrity of an exchange’s physical delivery mechanism.

Detailed below are the principal exchanges where metal brands can be listed and physical delivery of the metal may be called upon under the terms of the contract:

 

LMECME/NYMEXTOCOMSHFEDGCX
AluminiumGoldGoldCopperGold
CopperSilverSilverAluminiumSilver
ZincCopperAluminiumZincSteel Rebar
LeadAluminiumPlatinumGold
NickelPlatinumPalladium
TinPalladium
Aluminium Alloy
NASAAC
Steel Billet

 

Each exchange has its own listing procedures covering each metal contract.  Additionally, certain minimum requirements need to be met prior to a brand application submission.  Such minimum requirements include the producer’s capital net worth, number of years in business, number of years in production, annual production volume, and metal chemical specification.

Most applications across the different exchanges follow set procedures. These being:

  1. The producer contacts the exchange to obtain the latest brand listing guidelines and procedures.
  2. The producer obtains the services of an exchange member. For LME purposes, it is a requirement for a member to submit the completed brand application to the exchange.
  3. The producer collates and provides the completed brand application documentation and fee direct to the exchange or member. The documentation required will include: company structure, plant and production details, product details such as shape, size, weight, grade, markings and chemical analyses findings of the metal. Fees are generally non-refundable once the submission has been made to the exchange.
  4. Where applicable, physical testing of the producer material is then undertaken by approved testers with sampling and analysis carried out by independent samplers and assayers. Producers will need to separately agree the commercial terms with testers and samplers and assayers to complete this work.
  5. The test results are provided to the exchange and a final decision is provided covering the brand approval. Brand registration is then complete and an exchange notice is issued.

Key Tips for Brand Approval

The brand listing process is quite often misinterpreted making it a very difficult and time consuming task to complete.  5 key tips to ensure the process runs as smoothly as possible are: 

  1. It is vital to ensure at the outset that your production meets with the exchange’s requirements as set down in its contract specification and brand listing / registration procedures. This does not just relate to documentary requirements, but also to the underlying metal. For example, there are stipulated requirements on bundling and strapping methodology. This is to ensure that an applicant producer’s bundles withstand international shipment transportation.
  2. Always include up-to-date data. It may well be that you start compiling submission data well before the application is initially sent to the exchange / market. Under this scenario, the exchange could potentially receive out-of-date documentation, for example, daily chemical analyses reports. To avoid this always make a final check, before submitting the application, that all data is as up-to-date as possible.
  3. Identify and communicate with all parties involved in the listing process as early as possible. Engage the exchange, locate a member to submit your application, identify potential testers and samplers and assayers. This will ensure that you will avoid delays, miss deadlines and not incur irrevocable costly errors such as physical test material being used without the correct procedures being followed.
  4. Set out a project plan providing a timeline for the brand listing. What gets measured gets managed. Develop a set of key measures or milestones which are linked. Review progress and forthcoming activities regularly. For example, where there is the requirement for physical testing, it is very important to ensure that when you receive the instruction from the exchange that you need to ship the requisite tonnage to the approved testers that you have the material readily available at your works for shipment.
  5. If your company does not have the experience in-house to complete the brand application, consider employing a specialist company who will review the technical documentation, liaise with all parties and project manage the listing on your behalf. This will save time and money in the long run and allow you to continue focusing on your day to day business activities.

Filed Under: Articles

Office: 180 Piccadilly, London, W1J 9HF, UK
Telephone: + 44 (0)20 7917 2740
Fax: + 44 (0)20 7917 1740
Email: melaniewells@metalreg.com
Skype: metalreg1
  • LinkedIn
  • Twitter

Copyright © 2021 · Privacy Policy · Legal Information · Registered Office: 180 Piccadilly, St James, London, W1J 9HF · Registered in England No. 04155062 · VAT No: 792-1505-28

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Reject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT
  • English