HOTTER ON METALS: LME, Rusal await Court of Appeal verdict

Changes to the London Metal Exchange’s warehousing rules could kick in by the end of the year if the exchange wins an appeal at the Court of Appeal in the UK this week.

The appeal, being heard on Tuesday and Wednesday, is against a ruling that prevented the LME from implementing its warehousing rules after a suit was brought by Russian aluminium producer UC Rusal. If the judge hearing the case decides it is straightforward, a verdict could come as soon as Wednesday, with full details to follow at a later stage. Alternatively, the judge could decide that more time is needed and the market will have to wait longer for the result. With the court set to enter its summer recess on Friday August 1, a sooner-rather-than-later verdict would be preferable for a physical market that has been trying to establish its modus operandi for months. Again, much depends on the court decision. If the LME wins its appeal, it is expected to notify the market of its intent to implement its previously announced rules within three months, which could be as...

Published

Andrea Hotter

July 29, 2014

17:25 GMT

New York