Aug 28 2007
The London Metal Exchange (LME) has today confirmed the contract specifications for the two regional steel billet contracts it will launch in April 2008. The contracts cover two regions: Mediterranean and Far East.
Both contracts are physically deliverable; the initial delivery point for the Mediterranean will be Turkey, and Far East delivery point will be South Korea.
Further details of the contracts and the LME’s approach to risk management tools for steel will be outlined in a presentation by CEO, Martin Abbott, at the 8th Conference on Status and Outlook of the Malaysian Steel Industry: ASEAN Steel Industry Conference in Kuala Lumpur, Malaysia, 27 to 28 August 2007.
Commenting on this announcement, Liz Milan, LME steel business manager said:
“I am pleased to confirm details of these first two LME futures contracts for steel. We have arrived at the specifications following extensive consultation with our members and with the physical industry, where real appetite exists for reliable price risk management tools for steel.
A constant process of two-way communication with industry, through events such as the ASEAN conference and through LME educational workshops, is essential in ensuring that these contracts are a success.”