The London Metal Exchange has not yet come up with the right vehicle for flat steel products, Chief Executive Martin Abbott said on Tuesday. Skip related content
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"We believe that we have the long products pretty much covered," Abbott told a conference organised by Metal Bulletin. "We agree that we don't have the flat products, but neither have we tried because we have not yet come up with the right vehicle.
"That doesn't mean we won't try, that doesn't mean we're not looking but we haven't tried yet."
Flat steel products are used in automobiles and consumer goods.
In July, the exchange merged its two regional steel futures contracts -- Far East and Mediterranean -- to create one global contract.
The contracts started open electronic trade in February 2008 and then moved to open outcry trading on the floor of the LME in April of the same year.
The exchange is the only one with a physically delivered steel futures contract in North America.
With the LME contract, users can take out or put in delivery to all of the warehouses in Belgium, South Korea, Malaysia, Netherlands, Turkey, United Arab Emirates and newly-listed U.S. locations Chicago, Detroit and New Orleans.
Trading volumes of steel billet futures on the LME this year have surpassed the 10 million tonne mark, up almost five fold on the whole of 2009, the LME said earlier this month.
A Reuters survey back in July however, showed major steel producers still opposed the steel futures market, while smaller mills welcome the opportunity to hedge.