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According to a statement released by London Metal Exchange (LME), trading in steel futures on the LME hit another record level in May, with 13,788 lots traded of its Mediterranean steel billet contract, representing 896,220 metric tons.
 
The latest data reveal three consecutive months of record volumes in steel trading on the exchange. Importantly, Market Open Interest (MOI) in the contract has increased 194 percent since the start of the year, closing at 3,348 lots on Thursday, May 27, up from 1,138 lots on December 31, 2009
 
Commenting on the figures, LME's head of business development Chris Evans 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."
 
As SteelOrbis previously reported, on July 28 this year the LME is due to merge its existing regional Mediterranean and Far East steel billet contracts into a single contract with global delivery options. LME is currently assessing the viability of adding new delivery points in the US to expand its existing warehouse network for steel which includes storage facilities in Turkey, the Netherlands, Dubai, South Korea and Malaysia.