The London Metal Exchange has today commenced spot or cash trading, marking the end of the launch period, for both the Mediterranean (FM) and Far East (FF) LME steel billet futures contracts.

The first cash dates falling due provide the steel billet industry with access to valuable daily spot reference prices, and offers market participants the full flexibility of a range of daily trading dates out to 3 months.

Steel billet futures can now be traded every business day out to 3 months, then weekly, every Wednesday of the week, months 3 to 6, then monthly, every 3rd Wednesday of the month, months 7 to 15.

Commenting on the introduction of spot trading LME commercial director, Liz Milan said:

“For the first time in the history of the steel billet industry the physical market will have access to a transparent exchange traded spot price. This marks the end of the launch period for the contracts, and the start of their development as fully fledged LME contracts”.

Since launch the contracts have traded over 122,000 tonnes, with a turnover in excess of $129 million.

• 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 LME Select electronic trading platform;
• On 25 February 2008 the Exchange launched steel billet futures contracts for the Mediterranean and Far East regions.