The London Metal Exchange (LME) has confirmed the addition of new grades and shapes to its steel billet futures, which are due to be launched on April 28, 2008 after the soft launch to be realized on February 25, 2008.
In a statement on the issue, LME also confirmed the addition of Dubai as a proposed delivery location for the Mediterranean contract, in addition to the previously announced Marmara region in Turkey. Meanwhile, the delivery locations for Far East contracts will be Incheon, South Korea and Johor, Malaysia.
LME said that the trading and prompt date structure for the futures will be identical to LME's nonferrous metals futures for lead and tin, with prompt dates out to 15 months.
Commenting on the announcement, Liz Milan, LME steel business manager, said, "The level of engagement with all aspects of the steel industry has been sustained and high. Their feedback is that a wide range of grades and shapes will expand participation in the contracts and create a more accepted pricing mechanism. The decision to add Dubai as a proposed delivery location for the Mediterranean contract also reflects market demand and current trade flows."