Recommendations for the requirement at least 60 tonnes of
nickel and/or tin to be delivered out of London Metal Exchange
warehouses daily do not go far enough, tin market participants
told Metal Bulletin.
The LME has accepted the recommendations in principle
in response to concerns over queues for metal, but traders have
said the proposed new rates will not go all the way to solving
"I think that the LME's proposal, so far, on minimum load rates
for tin, is far too small," one trader said.
"[It could] help to exacerbate further the bottlenecks for tin
in Johor, and possibly elsewhere in the future."
The additional load-out rates could be a positive step, a sales
agent said, but added that he believes they should apply to tin
and nickel separately.
"I feel these proposals from the LME on additional load-out
rates for tin are a move in the right direction so that it
doesn't get caught up in the warehouse wars for aluminium,
zinc, and so on," he said.
"However, I don't see why we have to share the 60 tonnes with
another metal," the sales agent added.
Final approval and implementation of the amended load-out
policy will be subject to consultation with warehousing
companies under LME procedures.
Changes already implemented include a minimum load-out rate for
all base metals.
The requirement for additional tonnages to be loaded out would
come into force if a warehouse company had reached its minimum
daily load out rate, and had not delivered out 60 tonnes of tin
The LME has said that it recognises it would be "inappropriate"
to have a completely separate load-out schedule for tin and
It has also been proposed that the LME keeps the effectiveness
of any changes to load-out rates for the two metals under
Warehouse companies have been asked in a separate notice from
the LME to comment on the proposals by June 15.
No changes will be made until 90 days after the results of this
consultation are published.
European tin premiums, meanwhile, have remained flat for
another week, at $600-650 per tonne for 99.9% material, and
$400-550 per tonne for 99.85% material.