HOTTER ON METALS: Warehouses unhappy over LME proposals

The deadline for warehouse companies to submit comments on the proposed changes to London Metal Exchange delivery-out rate policies has passed – and warehouse firms are not happy.

The proposals are designed to address the effect that long queues for one metal may have on the availability of other metals.
The word on the street is that the proposals have not exactly been greeted with joy by the warehouse companies approved to store LME-registered metal.
Warehouse firms say the LME not only failed to consult with them in advance of the proposals being announced, but that the period of time for them to make comments afterwards was the shortest they have ever been given.
The LME says it has a constant dialogue with the industry, including warehousing firms, and that they were aware a review of warehousing was underway.
The LME announced the proposals on Thursday November 15, while the deadline for comments on the proposed changes was Friday December 7.
This equates to 17 working days, including the day the plans were first aired.

Timing aside, the...

Published

Andrea Hotter

December 13, 2012

12:40 GMT

New York