The UK’s top court refused to hear UC Rusal’s appeal of a London Metal Exchange plan to ease delivery backlogs at warehouses.
The UK Supreme Court’s decision effectively ends Rusal’s lawsuit over proposed new load-in and load-out rules and aluminum storage requirements for all LME warehouses, which the Russian company said were unfairly implemented and would cost it tens of millions of pounds sterling. Rusal also lost at the appeal level.
The LME released a statement saying “We are pleased that Rusal’s request for leave to appeal has been denied by the Supreme Court. We have believed from the start that Rusal’s complaint was without merit, and are glad that the Court of Appeal and the Supreme Court have recognized this. As the world’s leading base metals exchange, the LME has a duty to ensure the integrity of its reference prices and the operation of a fair and liquid market for all industry participants. To this end, the implementation of Load-In Load-Out will take place as planned and the remaining elements of our warehouse reforms package will also be addressed.”
The day’s biggest mover was the cash price of primary aluminum which dropped by 2.2% on Wednesday, December 17 to close at $1,875 per metric ton on the LME. The 3-month price of aluminum saw a 1.1% decline on the LME to $1,908 per metric ton. The cash price of primary Indian aluminum saw little movement yesterday, closing out around INR 122.35 ($1.92) per kilogram.
Chinese aluminum prices were mixed for the day. The price of Chinese aluminum scrap rose by 0.8% to CNY 12,900 ($2,085) per metric ton after a three-day flat streak. The Chinese aluminum cash price declined 0.7% to CNY 13,230 ($2,138) per metric ton. The price of Chinese aluminum bar fell 0.7% to a 30-day low of CNY 13,240 ($2,140) per metric ton yesterday. The price of Chinese aluminum billet remained steady at CNY 13,700 ($2,214) per metric ton.