Steel billet futures trading volumes have surged 214% in London Metal Exchange in first half of 2011 on a year-on-year basis.
Marking the continued success of LME Steel Billet, the contract has also won a prestigious annual award for innovation at the American Metal Market’s (AMM) Awards for Steel Excellence. The strong category of eight nominations included innovations by ArcelorMittal, BMW and Latrobe Steel, LME said in a press release.
Chris Evans, Head of Business Development at the LME, commented: “The strong growth of LME steel futures over the first half of 2011 indicates growing support from the industry. We hope that what appears innovative yesterday could soon become standard.”
In the first six months of this year, 123,173 lots were traded (H1 2010: 57,648 lots), equivalent to 8.0 million tonnes (H1 2010: 3.7 million tonnes). Market open interest has also climbed by 112 per cent, to 3,098 lots at the end of June (30 June 2010: 2,754 lots). The total notional value of LME Steel Billet traded in the first half of 2011 was $4.4 billion (H1 2010: $1.8 billion).
The contract has gained increasing support from its members, with 22 members now regularly trading LME Steel Billet. The addition of two European locations (Bilbao, Spain and Ravenna, Italy) will also enhance the contract's warehousing network in Europe, making it easier for the steel industry to utilise the contract. LME Steel Billet is now listed in 12 locations in nine countries.