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.

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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

About the London Metal Exchange

The London Metal Exchange is the world's premier base metals market. It offers metals price risk management tools including futures and options contracts for aluminium, copper, tin, nickel, zinc, lead, aluminium alloy and NASAAC, steel billet, plastics and the minor metals - cobalt and molybdenum. In 2009, the total value of trading was $7.41trillion, and the Exchange finished the year with 5.96m tonnes of material on warrant in 633 storage facilities across 39 locations globally.
http://www.lme.com/