NEW YORK The board of the London Metal Exchange has made a decision on its warehousing rules and "an announcement will be made in due course," the exchange said following a meeting Oct. 25.
The U.K. regulator will need to sign off on the decision before it can be formally announced, people familiar with the matter said.
The LMEs warehousing rules have been the subject of a three-month industry-wide consultation on proposals announced at the start of July (amm.com, July 1).
Feedback from the consultation was drawn into a final recommendation document prepared by the LMEs head of strategy and implementation, Matt Chamberlain, and discussed at the meeting.
In July, the LME proposed that in cases where it would take 100 calendar days or more to clear the backlog of canceled metal in a given location, warehouse companies would be subject to a calculated cumulative incremental load-out rate on top of their normal obligations, until the queue drops below 100 days.
The proposals have divided the market, with aluminum consumers, producers, warehousing firms and U.S. senators all offering their opinions.