LME warehouse location overhaul key: Rusal
Aug 06, 2013 | 11:12 AM
| Andrea Hotter
MOSCOW The London Metal Exchange should focus on building a warehouse network that reflects key consumption locations rather than adjusting the networks rules, United Co. Rusal chief executive officer Oleg Deripaska said in an interview in Moscow.
The LMEs network of approved warehouses reflects past areas of net consumption, rendering it a poor reflection of customer needs, he said.
"The old LME was about Europe and the United States. The new LME should be about Asia, Southeast Asia and new growth locations. Its actually a waste of time (putting metal in a warehouse) if you need to put another load on a ship to get material from a warehouse to a customer," Deripaska said. "Its not about the old warehousesthere should be incentives to actually adjust warehouse positions to where consumption is. We have consumption in one place, mostly in Asia, and we have warehousing in....
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