The London Metal Exchange (LME) Steel Billet contract has grown substantially in 2011 with record volumes, new location and brand listings, and industry recognition at the American Metal Market’s (AMM) Awards for Steel Excellence.
LME Steel Billet traded 209,229 lots up to the end of November 2011, equivalent to 13.6 million tonnes or USD7.7 billion, which is an increase of 30.4% from the corresponding period last year. From launch to the end of November 2011 447,627 lots have traded, the equivalent of 29.1 million tonnes and USD15 billion.
LME Steel Billet listed six new brands in 2011 from the USA, Vietnam and the Ukraine, with a total of 52 brands listed from 18 countries. The Spanish port of Bilbao was listed as a point of good delivery with effect from July, followed by Ravenna, Italy in September. There are now 12 locations listed for good delivery in nine countries. Charleston, USA is scheduled to be listed early next year.
The LME’s US storage facilities received their first delivery of billet in January, and have since seen a total stock turnover of more than 70,000 tonnes. Global stock turnover of LME Steel Billet in 2011 has reached nearly 200,000 tonnes to date, with 105,755 tonnes delivered in and 93,755 delivered out.
The LME’s success in introducing the first physically settled steel contract to the USA was recognised at the AMM Awards for Steel Excellence in June, where the contract won a prestigious annual award for innovation. Other nominees included Arcelormittal, BMW and Latrobe Steel.
“Momentum for the LME Steel Billet contract continues to grow,” says Chris Evans, Head of Business Development at the LME. “What was once seen as innovation will soon become common practice as the steel supply chain uses futures to improve profitability and manage everyday risk.”
