LONDON The 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 sources.
A version of this article was first published in AMM sister publication Metal Bulletin.