The London Metal Exchange has commenced spot or cash trading, marking the end of the launch period, for both the Mediterranean and Far East LME steel billet futures contracts.The London Metal Exchange has commenced spot or cash trading, marking the end of the launch period, for both the Mediterranean and Far East LME steel billet futures contracts.

The first cash dates falling due provide the steel billet industry with access to daily spot reference prices, and offers market participants the flexibility of a range of daily trading dates out to three months.

Steel billet futures can now be traded every business day out to three months, then weekly, every Wednesday of the week, months three to six, then monthly, every third Wednesday of the month, months seven to 15.

'For the first time in the history of the steel billet industry the physical market will have access to a transparent exchange traded spot price,' says LME commercial director Liz Milan. 'This marks the end of the launch period for the contracts, and the start of their development as fully fledged LME contracts.'

Since launch the contracts have traded more than 122,000 tonnes, with a turnover in excess of USD129m.

The LME is the world's largest non-ferrous metals market with a volume of almost 93 million lots in 2007, an increase of 7 per cent from the previous year on 2006 figures and equivalent to USD9.5trn in monetary terms.

Trading at the exchange in non-ferrous metals, steel and plastics takes place through open-outcry trading on the 'Ring', through an inter-office telephone market and through the LME Select electronic trading platform. The exchange launched steel billet futures contracts for the Mediterranean and Far East regions on February 25.