COMMENT: LME puts steel billet out of its misery but could it revive?

The London Metal Exchange’s steel billet contract, the modern exchange’s first foray into the ferrous arena, did not make it to its tenth anniversary – the LME suspended the virtually dead market on April 10 without any fuss.

In truth, the contract had been on life support for several years, having hardly set the world alight even when it was launched with great fanfare in early 2008 – with hard and soft launches for its two regional variants, Mediterranean and East Asia. Back then, the timing was wrong. The LME had passed up a golden chance to introduce steel in 2002, opting instead for a hotchpotch of plastics futures contracts. LME brokers and traders spent a lot of time and money researching and marketing these to no avail – they soon foundered – so there was...


Martin Hayes

April 18, 2017

16:22 GMT