The London Metal Exchange (LME) has announced that it has reached a turnover equivalent to one million mt for its steel billet contracts.
According to the announcement, the two regional contracts for the Mediterranean and Far East have traded over 15,300 lots (of 65 mt each) equivalent to one million mt with a theoretical turnover of approximately US$600 million since February 25, 2008.
"This is a notable milestone for the steel contracts and a high note for them to finish the year on. This has been a successful launch in a difficult environment, but this 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," commented LME Chief Executive Martin Abbott.
Currently, 33 brands of steel billet are listed for both the LME's Mediterranean and Far East contracts, for which there are 24 storage facilities at five locations in four countries.