New LME rules won't solve Al queues overnight, will increase volatility - Barclays

Queues to get metal from London Metal Exchange warehouses won’t vanish overnight and material starting to flow into off-warrant locations will likely lead to extra price volatility, Nicholas Snowdon of Barclays Capital said.

Cancellations of aluminium in particular are surging, he noted, in part due to concerns there will be a hike in rental levels in 2014 due to the new LME warehousing rules. At the same time, the present contango is very attractive for financing, Snowdon told the American Copper Council in Miami. “The differential in storage costs of LME warehouses versus off warrant...


Andrea Hotter

November 13, 2013

14:58 GMT