Things are changing… “Glencore Xstrata’s Pacorini has delisted 14 metals warehouses in the Dutch port of Vlissingen, the London Metal Exchange (LME) said on Tuesday, as storage firms get ready for big changes in the business,” reports Reuters.
“The LME, the world’s largest marketplace for metals such as copper and aluminium, announced new regulations aimed at cutting wait times to access metal in warehouses following complaints, lawsuits and regulatory pressure.”
“Pacorini in Vlissingen has rivalled Goldman Sachs’s Metro warehousing subsidiary in Detroit in having the longest queues for aluminium. Wait times for both still stretch for longer than a year.”
“To support the mechanism of physical delivery the LME approves and licenses a network of warehouses around the world. Warehouse companies must meet strict criteria before they are approved to handle metals.”
“Pacorini currently has more than 40 warehouses in Vlissingen, according to LME data. Industry sources say the 14 delisted warehouses are in any case empty, and had been built with future expansion in mind, before the LME announced its changes last year.”
In metal price news for aluminum…
On Tuesday, February 11, the day’s biggest mover was the cash price of primary Chinese aluminum, which saw a 3.2 percent decline. This was the first move after three changeless days. The price of Chinese aluminum bar was unchanged. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat. The price of Chinese aluminum scrap saw little movement.
The Indian aluminum cash price increased 0.5 percent. The cash price of primary aluminum saw a 0.4 percent decline on the LME to $1,672 per metric ton. On the LME, the 3-month price of aluminum fell 0.3 percent to $1,714 per metric ton.