Pacorini, owned by Glencore Xstrata, delisted 14 at Vlissingen, in the Netherlands. Impala Terminals, owned by Trafigura, delisted eight in Antwerp, Belgium.
Many market participants assume that the rationale behind the delistings is to decrease lengthy queues to access material before the exchange’s new warehousing rules take effect in April.
They also conclude that warehousing firms are getting rid of surplus-to-requirements LME-approved facilities as material moves off-warrant, again because of the new warehouse rules.
They are absolutely linked, and that’s not a bad thing, because LME stocks need to fall in order to reduce queues.
But it is highly likely that the delisted Vlissingen facilities will be used to store other commodities by Pacorini or its service provider.
In other words, it isn’t quite so clear cut.
What is more interesting is what is slowly starting to happen when delistings take place.
Worldwide Warehouse Solutions (WWS), for instance, took over...