UPDATE 2-LME says H1 volume up, to end plastics floor trade

* LME plastics to be removed from floor after consultation

* "Full steam ahead" on minors

(Recasts lead, adds detail/comment)

By Michael Taylor and Pratima Desai

LONDON, July 10 (Reuters) - Plastics contracts are to be scrapped from the London Metal Exchange's trading floor because of low volumes, its chief executive said on Friday, curtailing an experiment begun with their launch in 2005.

But the LME also said overall first half year trading volumes across the range of contracts traded on the exchange were better-than-expected -- defying its own predictions of a slump due to the economic downturn.

Speaking at a briefing, LME Chief Executive Martin Abbott said the withdrawal of plastics floor trading would take place in the first part of next year. "Plastics is coming off the floor ... they are not trading on the floor basically."

The LME offers eight plastics futures contracts for polypropylene (PP) and linear low density polyethylene (LL). Plastics are petro-chemical products, and are often heavily influenced by energy price moves.