UPDATE 4-LME steel futures debut, look to expand to N.America

(Updates prices)

By Humeyra Pamuk

LONDON, April 28 (Reuters) - Steel futures began open outcry trading on the floor of the London Metal Exchange (LME) on Monday, taking the conservative $800 billion industry into what many traders hope will be a new era.

Trading in steel billets started almost as soon as LME Commercial Director Liz Milan rang the bell to start the session on Europe's last open outcry trading floor.

The Mediterranean steel contract <FMDQ8=LX> saw trades at $995 and $1,005 a tonne and was last at $990/1,000, while the Far East contract <FFDQ8=LX> was last traded at $995.

"It is a big day," said Martin Abbott, the Chief Executive of the LME.

Latest Reuters data showed total matched trade on the ring on the Mediterrenean contract reached 18 lots and on the Far East contract 4 lots.

The first trades took place between AMT and Natexis.

Other ring dealers including Barclays, Metdist and Sucden also took part in the trading.