LONDON — The London Metal Exchange said it has proposed a further change to its rules concerning load-out rates for bonded warehouses.
The move follows the completion of a formal six-month review of the load-out requirements that took effect April 1.
Under the latest proposals, warehouses that hold more than 30,000 tonnes of cancelled material and have at least 30,000 tonnes of a single, dominant metal will be required to deliver out an extra 500 tonnes per day of metals other than the dominant one if requested.
This will come on top of the increased minimum load-out rates that were put in place earlier this year.
The LME’s steering committee received 13 written responses from individual organizations and groups during the review, it said.
The LME’s decision earlier this year to change load-out rates for tin and nickel to require at least 60 tonnes of either or both to be delivered out per day—which was made for similar reasons as Thursday’s announcement—will not be affected should these latest proposals be ratified. That measure will be implemented in April 2013.
The LME is inviting warehouse companies to comment on the proposed changes by Dec. 7.
A version of this article was first published by AMM sister publication Metal Bulletin.