The London Metal Exchange (LME) reported Friday that LME steel billet trading surged 214 percent in the first half of 2011 compared to the same period last year.
In the first six months of 2011, 123,173 lots (8 million metric tons) were traded compared to 57,648 lots (3.7 million metric tons) traded in the first six months of 2010. The LME also said that market open interest has climbed 112 percent to 2,098 lots at the end of June, up from 2,754 lots in the corresponding period last year. The total notional value of LME steel billet traded in the first half of 2011 was $4.4 billion, dramatically higher than $1.8 billion in the first half of last year.
Additionally, the LME reported that 22 members now regularly trade LME Steel Billet, and the addition of two European locations (Bilbao, Spain and Ravenna, Italy) will enhance the contract's warehousing network in Europe, making it easier for the steel industry to utilize the contract. LME Steel Billet is now listed in 12 locations in nine countries.