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03 August 2010
- Monthly trading achieves new record for the fifth consecutive month
- More than one million tonnes traded in July
- Contract’s global reach expected to gain further momentum in H2
Trading in steel futures on the London Metal Exchange (LME) hit another record level in July, with 18,906 lots traded of its steel billet contract.
The Exchange has registered five consecutive months of record volumes in steel trading since March. The latest surge in trading activity has occurred in the same month as the LME merged its two existing regional contracts – known as the Mediterranean and Far East billet contracts – into a single global contract.
For the first time, more than one million tonnes has been traded in a single month (total tonnage = 1,228,890 tonnes; notional value = $550m).
On June 23rd, the LME announced the addition of New Orleans as a point of good delivery for LME-registered steel billet, which will assist industry in the USA to use the contract. The Exchange is expecting to register another North American storage location as a point of good delivery later this year.
Chris Evans, Head of Business Development at the LME, said, “Another record month’s trading shows the LME billet contract is becoming increasingly relevant to the steel industry. We’re hoping for further momentum as the steel industry embraces risk management and the benefits of hedging on a regulated exchange.”
The LME’s steel billet contract is the world’s first global exchange-traded steel contract to be settled by physical delivery.
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For further information or to speak to an LME spokesman, please contact:
Stephen White
Business Manager Corporate Affairs
t. +44 (0)20 7264 1701 / +44 (0)7980 661 724
e. stephen.white@lme.com
John Parry - RostronParry
t. +44 (0)207 490 8062 / +44 (0)7802 292251
e. john@rostronparry.com
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