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The London Metal Exchange has today confirmed that it will commence futures trading in steel billet in April 2008. There will be two regional contracts, one for the Near East and one for the Far East.
Today's announcement is the first part of the LME's offering of price risk management tools to the steel industry and it follows a period of extensive consultation with LME members and physical industry.
Commenting on this major development, Martin Abbott LME chief executive said:
"There are many ways in which price risk management tools can be delivered to the steel industry. Our physically-delivered steel billet contracts are the first, of what could be several, steel contracts offered by the LME. In providing this service we are building on the credibility and experience that we have developed in over 130 years of base metals trading and physical delivery, as well as the vast knowledge and distribution mechanism represented within the LME member firms."
Liz Milan, LME steel business manager added:
"Like all contracts the steel billet contracts will take time to build but there is a real appetite for this offering from our members, their clients and from those in the steel industry who already recognise the value of price risk management tools. For those that don't yet see the benefits, the LME will commence a thorough programme of education."
- To find out more about LME Steel Futures visit http://www.lme.com/steel.asp.
- To view frequently asked questions about LME Steel Futures, click here.
- To sign up for the LME Steel Community click here.
- For further information and feedback about LME Steel Futures, contact the LME Steel project team by emailing info.steel@lme.com.
