The London Metal Exchange’s steel contract may need some “fine-tuning” after the possible sale of the exchange is completed, said Martin Abbott, chief executive officer.
“The billet contract as a relatively new contract is under particular scrutiny,” Abbott said in an interview in London today. “My guess is that at some point we’ll have to do some fine-tuning at least and we’ll be ready to do that, but probably not while we’re otherwise engaged with the potential transaction. I don’t think we need to focus on the billet contract right now.”
Steel billet trading on the LME fell 30 percent to 11,307 contracts in May from the year earlier. One contract is 65 metric tons. The contract, introduced in 2008, traded at $400 a ton for a three-month delivery yesterday.
Shareholders of the 135-year-old London exchange are expected to vote on a 1.39 billion pound ($2.2 billion) takeover proposal by Hong Kong Exchanges & Clearing Ltd. at the end of next month.
To contact the reporter on this story: Agnieszka Troszkiewicz in London at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Carpenter at email@example.com