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On June 22, the London Metal Exchange (LME) announced its intention to list New Orleans as its first US delivery location for steel billet.
 
New Orleans is seen as a key addition to the LME's existing network of steel delivery locations worldwide, which includes South Korea, Malaysia, Belgium, Turkey, the Netherlands and Dubai. LME said that other US and European locations are currently under investigation.
 
Volumes of steel futures traded at the LME have surged dramatically in the first half of 2010, with record monthly volumes in each of the last three months (March-May).
 
In May, steel trading volumes on the LME totalled 896,220 metric tons with a notional value in excess of $400million, driven by a broad range of market participants including producers, consumers, traders, stockists and investors.  
 
Market Open Interest (MOI) in the contract has increased 151 percent since the start of the year, closing at 2,976 lots on June 18, up from 1,138 lots on December 31, 2009.
 
As SteelOrbis previously reported, on July 28 the LME will formally merge its existing regional futures contracts for steel billet covering the Mediterranean and Far East regions to create a single global offering for steel billet and a North American delivery point is central to this initiative.