Novelis blasts LME warehouse plan ruling
Mar 28, 2014 | 02:50 PM
| Michael Cowden
CHICAGO Novelis Inc. president and chief executive officer Philip Martens lashed out at a judgment by the United Kingdoms High Court of Justice that stopped proposed London Metal Exchange warehouse reforms from being implemented, saying the outcome would prove destructive to the market.
The Atlanta-based secondary aluminum producer has worked closely with the LME and other interested parties for more than two years to push for changes to warehouse rules aimed at trimming queues at sheds with bloated inventories, Martens said in a statement March 28.
Those efforts have been stymied by the High Courts ruling in favor of Moscow-based primary aluminum producer United Co. Rusals (UC Rusals) unilateral lawsuit seeking to block the proposed changes, Martens said. The result is that waits of more than a year for metal at some LME-listed warehouses will continue, supporting artificially inflated premiums and calling into question the relevancy of LME pricing, he said. ....
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