The London Metal Exchange announced that it will suspend Detroit, Chicago, New Orleans, Dubai, Johor and Incheon as billet delivery locations on the LME steel billet contract, following an LME Steel Committee and Executive Committee Recommendation. The LME steel billet contract will then become a European and Eastern Mediterranean steel billet contract.
The LME said in a press release that no more steel billet may be placed on LME warrant in Detroit, Chicago, New Orleans, Dubai, Johor and Incheon on or after February 25, 2013. Steel billet on LME warrant in the delisted locations will cease to be good delivery against the LME steel billet contract on and after May 30, 2014.
Additionally, the LME said Thursday that its board of directors announced the Financial Services Authority has approved the Hong Kong Exchanges and Clearing Limited acquisition of LME Limited through its indirect subsidiary, HKEx Investment.
In June of this year, the LME board announced that LME Holdings, HK Investment and Hong Kong Exchanges and Clearing Limited all entered into an agreement. In July, the LME board said that shareholders had approved the transaction.
Subject to some remaining closing conditions, the acquisition could be completed around December 6, 2012.