London Metal Exchange (LME) has approved Chicago and Detroit as points of good delivery for its steel billet contract.

According to LME, the new delivery points will be listed with effect from 16 November 2010.

The listing of new locations follows the LME’s June announcement to establish its first US delivery location for steel in New Orleans.

LME’s existing network of steel delivery locations includes locations in South Korea, Malaysia, Belgium, Turkey, the Netherlands and Dubai.

LME head of business development Chris Evans said that the volumes in the LME’s physically-deliverable contract are growing steadily as the steel industry recognizes the benefits of price transparency and risk management that the exchange offers.

“Suppliers, mills, merchants and end users globally are able to use the LME to manage their cash flow and inventories, lock in margins and deal with price volatility,” Evans said.