Arab Today, arab today lme setback by ruling on aluminium stockpiling
Last Updated : GMT 15:21:06
Arab Today, arab today
Arab Today, arab today

LME setback by ruling on aluminium stockpiling

Arab Today, arab today

Arab Today, arab today LME setback by ruling on aluminium stockpiling

London - AFP

The London Metal Exchange, the main global metals market, suffered a big setback on Thursday in attempts to reform its warehousing network when a court ruled in favour of objections by Russian firm Rusal. The dispute hinges on plentiful supply of aluminium, and on low interest rates which encourage the stockpiling of metals.   The decision by the High Court means that the new warehousing arrangements, a top reform for the LME, will be delayed beyond the intended launch date of April 1. Rusal, a leading group in the aluminium industry, had complained to the court that consultations about the new arrangements had been carried out in an unjust and illegal way. The LME had intended that the reform would oblige warehouses in its network to deliver more metal each day than they receive. Currently, a lapse of 50 days occurs before metal due for delivery can be collected. The purpose of the change was to counter big increases in charges for transportation, insurance and warehousing which consumers have to pay to take possession of their metal. Aluminium is the metal most affected by these delivery problems. Several companies which use aluminium had complained about difficulties in receiving physical metal from the LME and the increase in charges, which amount to up to 15 percent of the LME price. A spokeswoman for the LME said that the organisation continued to hold that the complaint by Rusal was unjustified overall, and was considering either appealing or beginning a new round of consultations. The president of Rusal, Oleg Deripaska, said his company welcomed the ruling and was keen to work closely with the LME and other concerned parties on the consultations and changes to the rules so as to improve the transparency of the market. Big producers of aluminium, including Rusal and US group Alcoa, had raised strong opposition to the LME's proposed reform. They would suffer from a lowering of charges since these help their cash situation given that the price of aluminium on the LME has fallen by more than half since 2008. - Low interest rates - The price has fallen because supplies are plentiful, even though users have difficulty in taking delivery of supplies. However, this is because since the financial crisis the stockpiling of aluminium has become a highly profitable activity owing to technical and financial factors, including exceptionally low interest rates. This has led to a rise of inventories and long delays for the release of metal from warehouses, and increasingly high charges. Some analysts were sceptical about the effect of the LME reform on the charges. Analysts at Commerzbank argued that an increase in base interest rates by the US Federal Reserve central bank would have a far bigger effect by reducing the financial return from the warehousing of metals. They also argued that producers of aluminium may have to reduce their capacity so as to reduce supplies and push up prices. In February, Rusal said that it would reduce its production by 3.5 million tonnes this year as part of a sharp reduction of its capacity.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lme setback by ruling on aluminium stockpiling Arab Today, arab today lme setback by ruling on aluminium stockpiling

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lme setback by ruling on aluminium stockpiling Arab Today, arab today lme setback by ruling on aluminium stockpiling

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Writing's on the wall for Trump, Zuckerberg

GMT 09:05 2017 Thursday ,19 October

Writing's on the wall for Trump, Zuckerberg
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday