The key findings are:

• The LME is best placed to launch steel futures contracts
• There is a growing demand from steel industry participants for more versatile and effective price risk management tools
• Respondents are looking for separate contracts in the flat and long product sectors
• Most respondents would benefit from additional pricing information.
• There will be a need for a significant communication effort to increase the awareness and understanding of derivative contracts to the needs of the steel community.

The full summary can be found on the new website devoted to steel futures by the LME – www.lmesteel.com – which is launched today.

Commenting today LME chief executive Simon Heale said;

“This summary gives all the principal findings from our survey in a highly accessible form. The results are drawn from participants in key sectors of the industry and have been useful in supplementing what we have heard from our other contacts with the steel industry.

“The LME is also launching its dedicated steel website to act as one of our communication routes during our consultation on the possibility of steel futures contracts.

“I hope that steel industry participants will find the site useful, and will take the opportunity to give us their views as we develop our ideas on steel futures contracts.”

Notes to editors.

1. The LME is the world’s largest non-ferrous metals futures and traded options Exchange.
2. It trades by open outcry, through an electronic platform LME Select, and through a 24-hour inter-office telephone market.
3. The LME turns over contracts with a value of more than $2,000 billion each year and contributes some £ 250 million in invisible earnings each year.