Turnover since the launch of the London Metal Exchange’s billet contracts in February 2008 now totals 1.3 million tonnes, or USD679m, with volumes increasing progressively since Decembe
Turnover since the launch of the London Metal Exchange’s billet contracts in February 2008 now totals 1.3 million tonnes, or USD679m, with volumes increasing progressively since December, according to the LME’s steel committee.
The committee says the decision by leading price providers Platts and SteelOrbis to use the LME Mediterranean billet contract as the central reference point for their scrap and rebar market assessments is of significant importance.
Both organisations will publish rebar prices as a premium to the LME billet price and scrap prices as a discount to the LME price.
‘The LME steel price is fast becoming the industry reference price,’ says Liz Milan, commercial director of the exchange. ‘Industry can be confident that our prices reflect the market and that they can use our contracts to manage their risk.’
The committee is chaired by Standard Bank’s Jim Coupland. LME chief executive Martin Abbott is vice chairman.
Other members of the committee are: Ugur Dalbeler (Colakoglu); Butch Zeederberg (MacSteel); Ray Key (Deutsche Bank); Tim Wilson (JP Morgan); Mark Lyons (Cargill International Trading Pte); Jean-Luc Fiorenzoni (Stemcor); Liz Milan (LME); Michael Hutchinson (RBS Sempra Metals Ltd); Mel Wilde (Metalloyd); Jeff Kabel (Koch); Shon Loth (ICS); and Stephen Branton-Speak (Goldman Sachs).
