It is reported that the London Metal Exchange has proceeded with soft launch of steel billet futures trade on Monday.

The first available settlement date for both LME contracts is August 20th 2008. Further settlement dates 15 months ahead will also be available. Open outcry floor trading starts on April 28th 2008, when cash contracts also will be available.

The delivery points for the Mediterranean contract will be Turkey and Dubai while for the Far East are Malaysia and South Korea.

While banks, brokers and speculators are eager for a new avenue to trade the global commodities boom, many steelmakers oppose the launch for fear a derivatives contract would actually increase volatility.