The London-based metals exchange already has a steel derivative: It launched two physically backed regional billet futures contracts in April 2008, one Mediterranean and one Far East contract, which subsequently merged into the Mediterranean contract in July 2008. It is now considering the launch of a cash-settled steel contract, following the example of other exchanges such as the CME, which have seen trading volumes grow in the past few months. Volumes of the existing LME steel billet contract rose 30.4 percent in the year to November, the LME said, but traders say interest in the contract from industrial and financial participants is shrinking.