LME warehouses offering $100/t incentives to draw in copper
Feb 19, 2013 | 11:55 AM
| Mark Burton
Tags
Antwerp,
incentives,
copper premiums,
London Metal Exchange,
LME warehouses,
contango,
surplus,
Mark Burton
LONDON — London Metal Exchange warehouse companies operating in Antwerp, Belgium, are offering incentives of $100 per tonne to attract copper on to warrant there, sources told AMM sister publication Metal Bulletin.
By doing so, warehouse companies can earn rent on the material while it sits behind or in the queue that has developed there as a result of large cancellations of zinc, lead and steel towards the end of last year.
There were 484,850 tonnes of metal stored in LME-listed warehouses in Antwerp on Feb. 15, about 57 percent of which was held under canceled warrant.
The queue is the third longest in the LME system, behind Detroit and New Orleans. Metal Bulletin calculations suggest that it would take more than 520 working days, or nearly two years, to withdraw metal at the back of the queue in Detroit, where more than 1.1 million tonnes of metal are awaiting withdrawal. ....
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