Steel billet industry will have access to a transparent exchange traded spot

Tag : Non-ferrous Metal
The London Metal Exchange has commenced spot or cash trading,marking the end of the launch period, for both the Mediterraneanand Far East LME steel billet futures contracts.

The first cash dates falling due provide the steel billet industrywith access to daily spot reference prices, and offers marketparticipants the flexibility of a range of daily trading dates outto three months.

Steel billet futures can now be traded every business day out tothree months, then weekly, every Wednesday of the week, monthsthree to six, then monthly, every third Wednesday of the month,months seven to 15.

'For the first time in the history of the steel billet industry thephysical market will have access to a transparent exchange tradedspot price,' says LME commercial director Liz Milan. 'This marksthe end of the launch period for the contracts, and the start oftheir development as fully fledged LME contracts.'

Since launch the contracts have traded more than 122,000 tonnes,with a turnover in excess of USD129m.

The LME is the world's largest non-ferrous metals market with avolume of almost 93 million lots in 2007, an increase of 7 per centfrom the previous year on 2006 figures and equivalent to USD9.5trnin monetary terms.

Trading at the exchange in non-ferrous metals, steel and plasticstakes place through open-outcry trading on the 'Ring', through aninter-office telephone market and through the LME Select electronictrading platform. The exchange launched steel billet futurescontracts for the Mediterranean and Far East regions on February25.

Source: Hedge Week