The two regional contracts for the Mediterranean and Far East have traded, since the 25 February 2008, over 15,300 lots (65 tonne lots) equivalent to one million tonnes with a notional turnover of approximately $600 million USD.
Commenting on the announcement, Martin Abbott, LME Chief Executive said:
“This is a notable milestone for the steel contracts and a high note for them to finish the year on. This has been a successful launch in a difficult environment, but this environment further highlights the value and importance of the LME services of transparently derived pricing, price risk management and physical delivery offered through these contracts to the steel market.”
The LME now has 33 brands of steel billet listed for both contracts and 24 storage facilities at five locations in four countries.
Background:
- On 25 February 2008 the Exchange launched steel billet futures contracts for the Mediterranean and Far East regions;
- LME listed steel brands can be viewed at the following webpage www.lme.com/what_branding.asp;
- A full list of Steel storage facilities and locations are available on the LME website at www.lme.com/what_warehouses_approved.asp;
- Cash (spot) trading for the LME steel billet contracts commenced on the 24 July 2008;
- The LME steel billet contracts are traded in lots of 65 metric tonnes;
- The LME is the world’s premier non-ferrous metals market and achieved volumes of almost 93 million lots in 2007, an increase of 7% on 2006 figures and equivalent to $9,500 billion in monetary terms;
- Trading at the LME in non-ferrous metals, steel and plastics takes place across three platforms: through open-outcry trading on the “Ring”; through an inter-office telephone market and through LMEselect electronic trading platform.
