photo credit: quinn.anya
This week the London Metal Exchange (LME) said that it is taking on board recommendations made following a study of its warehousing system.
The LME warehouses have been suffering from a problem where long queues form in its delivery operations, and the study looked at ways to alleviate these bottlenecks.
In a press release the Exchange said that it “has accepted the recommendations put before it in respect to loading out rates above 300,000 tonnes per company per location per day.”
Research carried out by the Europe Economics consultancy urged the LME to raise the minimum delivery load in its warehouses for stockpiles between 300,000 and 600,000 tonnes to 2,000 tonnes. Currently the minimum rate stands at 1,500 tonnes.
If stockpiled metals in a warehouse were between 600,000 and 900,000 tonnes it said that the minimum load should be raised to 2,500 tonnes. For warehouse stockpiles below 300,000 tonnes, the minimum load can remain at 1,500 tonnes, it concluded.