The London Metal Exchange’s (LME) new US storage facilities for steel billet saw their first delivery yesterday with 325 tonnes delivered into Chicago.
The LME approved its first US storage facilities for LME steel last year in New Orleans (June 2010), Chicago and Detroit (November 2010) to further support the use of the Exchange’s hedging tools by market participants in the US steel industry. The three US locations expanded the LME’s network of steel delivery locations worldwide, which also includes ports in South Korea, Malaysia, Belgium, Turkey, the Netherlands and the United Arab Emirates. The Exchange intends to name further US storage facilities later this year. Chris Evans, Head of Business Development, said, “This is a major milestone in the evolution of the LME steel contract. The delivery of material into a US location demonstrates there is demand for risk management solutions from the US steel industry. We are working on a number of initiatives to make it as easy as possible for US-based steel mills, merchants and consumers to utilise the LME’s hedging, pricing and delivery services.” Volumes of steel billet futures traded at the LME grew substantially in 2010 up 512%, from the previous year (2010: 191,221 lots traded; 2009, 31,211). December also saw the highest monthly volumes since the contract’s inception, with 30,751 lots traded.
FTSE Mondo Visione Exchanges Index:
First LME Steel Delivered Into New US Storage Facilities In Chicago
Date 27/01/2011