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Trading in steel futures on the London Metal Exchange (LME) hit another record level in May, with 13,788 lots traded of its Mediterranean steel billet contract, representing 896,220 tonnes (notional value = $415m).
The latest data reveals 3 consecutive months of record volumes in steel trading on the Exchange. Importantly, Market Open Interest (MOI) in the contract has increased 194% since the start of the year, closing at 3,348 lots on Thursday, 27th May, up from 1,138 lots on 31st December, 2009
Chris Evans, Head of Business Development at the LME, said, “LME steel billet contracts continue to perform well as the uncertain economic environment puts a premium on sound risk management and specifically hedging. Steel futures at the London Metal Exchange are more relevant than ever and we are pleased with the traction this contract is getting in the market.”
On 28th July, 2010, the LME is due to merge its existing regional Mediterranean and Far East steel billet contracts into a single contract with global delivery options. The Exchange is currently assessing the viability of adding new delivery points in the United States of America to expand its existing warehouse network for steel which includes storage facilities in Turkey, the Netherlands, Dubai, South Korea and Malaysia.
