Market participants said that both banks and buyers are starting to be more particular about the material they finance, and are asking for pictures of the material more often, as well as some asking for “guaranteed age” material to ensure that it has not been sat in warehouses for too long.
This is in part as a result of market participants receiving warranted or re-warranted material that is dirty, and some apparently “good delivery” material which cannot be tied to a specific certificate of analysis (CoA).
Such a guarantee of age would usually form part of the producer’s original CoA, but in some circumstances – particularly in the cases of large volumes being bought – while the CoA is available it is difficult to link a specific certificate to a specific lot.
According to the LME rulebook, “on request, the warehouseman is obliged to submit to the holder of the warrant,...
