London Metal Exchange has approved a recommendation by the
copper committee to relist Vlissingen, the Netherlands, as a
delivery point for copper, it said July 26.
The LME delisted
Vlissingen in April 2012 after the committee raised concerns
that copper would become locked up behind the large queue to
deliver aluminum out of the Dutch port. At the time, sources
said committee members were concerned that the movement of
copper into Vlissingen would crimp supplies in the European
market and lead to an increase in premiums in the region.
But the delisting
proved ineffective as a measure to safeguard availability in
Europe, as large volumes of copper were delivered into
backlogged warehouses in Antwerp after a large queue to
withdraw metals, including zinc and steel, developed toward the
end of last year.
Earlier this year
Pacorini Metals BV, which owns the large majority of warehouses
in Vlissingen, began lobbying the copper committee to relist
the port on the grounds that it gave Antwerp-based rival Nems
Ltd. an unfair competitive advantage, according to market
A version of this
article was first published in AMM sister publication Metal