More LME warehouse delistings possible: Deverell
Feb 15, 2013 | 10:44 AM
| Janie Davies
Tags
LME,
warehouses,
delisting,
aluminum,
copper,
tin,
zinc,
Credit Suisse
Ric Deverell
LONDON — Queues to obtain metal from London Metal Exchange-bonded warehouses could lead to further warehouse delistings, with Detroit being a prime target, according to Ric Deverell, managing director and head of commodities research at Credit Suisse Group AG.
Vlissingen, the Netherlands, was delisted for good delivery of copper in 2012 following a unanimous recommendation from the LME Copper Committee amid concerns that queues to obtain metal would distort prices and premiums.
Queues in Detroit—where warehouses contain more than 1.4 million tonnes of aluminum, almost 70 percent of which is in the form of cancelled warrants waiting to be delivered out—have already been blamed for inflated premiums for the light metal.....
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