The milestone was reached during the morning of July 22 and brought the July total up to over 2,500 contracts traded, already the highest monthly total during 2009. LME members are also reporting that additional, non-cleared, OTC volumes based on the LME contract spec are exceeding four times those trading across the Exchange platforms. These numbers indicate a growing acceptance of the LME’s steel contract in this market.

Lotta Ulfsdotter, Business Manager for Steel at the LME comments: “The LME steel price has become an integral part of the steel industry and exchange volumes are growing steadily. Importantly, LME prices have begun to be referenced in the physical scrap and reinforcement bar transactions.”

Key developments since LME steel billet contracts were launched in April 2008 include:

• Total LME trading of 2 million tonnes, almost all in the Mediterranean contract.
• The European ferrous scrap industry is increasingly pricing scrap at a discount to the LME price for physical supply contracts.
• Some construction firms are using the LME steel price as the reference point for rebar, as well as hedging rebar price exposure
• 100,000 tonnes of steel billet have been delivered into LME approved warehouses in the last year.

~Ends~

For further information or to speak to an LME spokesperson, please contact:
Stephen White
Business Manager Corporate Affairs, LME
t. +44 (0)20 7264 1701 / +44 (0)7980 661 724
e. stephen.white@lme.com

Charlotte Rutherford
Rostron Parry
t. +44 207 490 8062
charlotte@rostrongparry.com

About the London Metal Exchange
The London Metal Exchange is the world's premier base metals market. It offers futures and options contracts for aluminium, copper, tin, nickel, zinc, lead, aluminium alloy and NASAAC, steel billet, plastics and soon cobalt and molybdenum. Last year, turnover for the Exchange was $10.24trillion and the Exchange currently has 5.13m tonnes of metals on warrant in 516 warehouses across 38 locations globally.
http://www.lme.com/