Commenting on the announcement, Martin Abbott, chief executive, LME, said: This is a milestone for steel contracts and a high note for them to finish the year on. This has been a successful launch in a difficult environment, but the environment further highlights the value and importance of the LME services of transparently derived pricing, price risk management and physical delivery offered through these contracts to the steel market."
LME now has 33 brands of steel billets listed for both contracts and 24 storage facilities at five locations in four countries. On February 25, the exchange launched steel billet futures contracts for the Mediterranean and Far East regions. Cash (spot) trading for the LME steel billet contracts commenced on the July 24.
LME steel billet contracts are traded in lots of 65 metric tonne. The exchange also announced listing of a new storage facility for the Mediterranean (FM) steel billet futures contract, which is located in Tekirdag in Marmara. LME 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.