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  Introduction
  The origins of the London Metal Exchange (LME) can be traced back to the to the opening of the Royal Exchange in London in 1571, where traders in metal met on a regular basis. Initially the deal was limited to Britain, but from the early 19th Century, the tradition of "Ring" was born, and the LME market started to take off in earnest. Currently LME provides the function of hedging and pricing of non-ferrous metals in addition to delivery and warehousing, and it plays a pivotal role in the pricing of non-ferrous metals. In November 2001, Korea became the twelfth nation in the world to conduct LME operation and in October 2002, GEL began to operate LME-approved warehouses in Korea.
   
  LME Functions
  (1) Price discovery
  .The LME determines the price of non-ferrous metals based upon orders submitted to the Exchange ...and publishes the daily metals price.
   
  (2) Hedging
  .LME provides an opportunity for primarily non-ferrous base metals-related industries including
...mining,smelting and trading companies to protect against risks from fluctuations in the base
.. metal prices.
...This hedging function is one of the most important function of the Exchange since its founding.
   
  (3) Supply & Demand
  .LME helps the non-ferrous base metal industry to maintain a stable production of metals, through
...warehousing of excess metals during a bear market, in addition to providing cash to the metal
...producers for the warehoused metals.
...Further, metal "futures market" investors can profit from buying metals stored in the LME warehouse.
   
  (4) Delivery
  .Although initially the LME contract was limited to "futures market exchange" transaction, its business
...scope was expanded to the delivery function whereby end-users could be readily supplied.with the
...metals of certain quality and standard when they need it.
   
  How Global Enterprises, Ltd. LME warehouse operation benefits the local industry and nation
  Korea 's self-sufficiency of non-ferrous metals is below 50% and in case of aluminum where annual demand exceed one million tons annually, it has all been imported 100%, incurring huge logistics cost. However with the operation of the LME warehouse, local manufacturers can now get timely supply of metals, resulting in lower inventory cost and cut in the logistics cost assuring stable operation of plants. Further, with the supply of metals to the Government Procurement Office which assumes a pivotal role in the supply of materials to the defense contractors and the local industry; the local LME authorized warehouse plays a important role in the support of their local industry.
 
     
     

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