The incentive to bring aluminium into Metro’s warehouses in Detroit is believed to be about $195, down about $30 since the LME’s surprise announcement on Monday July 1
, market observers claimed.
Pacorini – which is believed to have backlogged sheds in Vlissingen, New Orleans and Johor – and NEMS, the dominant player in Antwerp, are also recalculating the incentives they will pay to take in metal, sources said.
From next year, the LME will require warehouse companies to deliver out more metal than they load in at locations where the queue to withdraw metal is 100 days or more.
Based on the length of the current load-out queues, the locations most affected by the change will be Vlissingen and Detroit – where the majority of LME aluminium is stored –...