LME considers separate delivery rates for individual metals

The London Metal Exchange is considering implementing separate warehouse delivery requirements for individual metals so customers with material in locations storing large tonnages do not have to wait months for deliveries, people familiar with the situation told Metal Bulletin.

The proposed rule change is a response to the continuing controversy surrounding the exchange’s warehousing rules. The long queues to obtain metal that have grown up as a result of financing deals have divided the market, with some arguing that they are a symptom of low interest rates, contangoes and surplus production. Others, with some aluminium producers among them at Metal Bulletin's aluminium conference in Moscow last month, contend that the queues have distorted the market. The proposals would theoretically enable customers with nickel, zinc or lead in warehouses owned by a unit of Goldman Sachs in Detroit to access their metal in a timely...


Andrea Hotter

October 02, 2012

16:30 GMT

New York