RUSAL v LME: Warehousing proposals came from Charles Li, consultation was unfair, court told

The London Metal Exchange’s soon-to-be implemented policies on warehouse load-in and load-out rates originated with Charles Li, ceo of owner HKEx, and may have been connected with a desire to be seen not to be “doing nothing”, the UK High Court was told on Wednesday February 26.

During the first of two days of hearings on the claims filed against the LME by Russian aluminium producer Rusal – which states the new regulations should be removed and the LME asked to reconsider – it also emerged that the then-ceo of the LME, Martin Abbott, wrote a letter in December 2012 stating the LME had already gone as far as it could to address long aluminium queues. In the letter, written to Steve Hodgson on behalf of Rusal Marketing, Abbott stated that the increase in delivery out rates, implemented in April 2012, went “as far as [was] reasonable to address the effect on the aluminium market of long aluminium queues in some locations”, the court heard. He added that...

Published

Claire Hack

February 27, 2014

08:20 GMT

London