LME proposes to boost load-out rates, cap rents to tackle queues [UPDATED]

A market-wide consultation by the London Metal Exchange (LME) will gauge the response to two new queue-cutting proposals as the bourse enters what it hopes is the “final straight” of its warehouse reform programme, ceo Garry Jones said at a briefing on Tuesday July 1.

Following a two-month discussion period, the exchange has recommended an increase in the minimum load-out rates for metal stored in its approved warehouses, and a new cap on rent that can be charged on metal in a queue. A consultation period on the recommendations will run for six weeks from July 1. The LME launched a warehouse reform programme in November 2013 after a market consultation revealed concerns over rent inflation and rising premiums. "We are pleased with the impact our reforms have already had in cutting queues at warehouses," Jones said in a statement on Wednesday. "However, the proposals we are putting forward today are necessary to ensure that remaining queues and related issues are addressed in...

Published

Charlotte Radford

July 03, 2015

16:00 GMT

London