The London Metal Exchange (LME) announced on January 12 that it registered new records for volume and value of trading of metals in 2011. Accordingly, the LME's total metals trading in 2011 rose 21.9 percent year on year to 146.6 million lots (120.3 million in 2010). This was equivalent to 3.5 billion mt of material. In 2011, the notional value of all contracts traded surged 32.8 percent year on year to US$15.4 trillion, from US$11.6 trillion recorded in 2010.
Meanwhile, as regards steel billet traded on the LME, 219,163 lots were traded in 2011, up 15 percent from 2010 (191,221 lots) and equivalent to 14.25 million mt and $8.02 billion. The LME commented in its announcement that its steel bilet trading division saw another strong year, adding that the steel industry is increasingly recognising the value of the contract to help manage risk, with 52 brands listed and 72 LME-approved warehouses.
"With a $15.4 trillion notional turnover on the exchange, and 80 percent of the market share in global metal futures transactions, the LME maintains its leading position in the global metals market," said Martin Abbott, LME chief executive, adding that the LME's new contracts are also performing well as the industry demand for risk management solutions increases.