LME draws up measures to manage warehouse, delivery point closures due to Covid-19

The London Metal Exchange has developed procedures to manage the temporary unavailability of one of its approved warehouses or delivery points that might stem from the Covid-19 outbreak.

These measures, which are in line with the exchange’s Warehouse Agreement, address potential issues around delivery obligations, warranting and rent payments, it said. 
“These procedures have been discussed with the LME Warehousing Committee and would only be invoked (via LME notice) in the event of closures relating to Covid-19,” the LME noted. 

A delivery point and therefore all warehouses operating there, or an individual warehouse within a delivery point, could be forced to shut for a period if a government imposes a lockdown or staff become sick. The result could be market tightness or physical supply disruption caused by difficulties...

Published

Andrea Hotter

March 26, 2020

15:09 GMT

New York