LME rule change proposal gives warehouses pause

Jul 23, 2013 | 11:28 AM | Andrea Hotter

Tags  Warehousing, London Metal Exchange, aluminum, zinc, copper, Glencore Xstrata, Pacorini Metals, Goldman Sachs Group Metro International Trade Services

NEW YORK — After months of paying high incentives to attract aluminum, copper and zinc into storage, warehouse companies have gone shy.

Proposed changes to the London Metal Exchange’s warehousing rules have already led warehouses to back away from attracting material into locations with long queues to access metal, a move they said will continue while they fully evaluate the implications of the changes.

Glencore Xstrata Plc’s Pacorini Metals, Goldman Sachs Group Inc.’s Metro International Trade Services and Trafigura Ltd.’s Nems Ltd. are the three big warehousing companies that would be impacted most by the new rules, which would link load-in and load-out requirements at locations with delivery wait times of 100 calendar days or more.....

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