Bloomberg
Brewers press LME to cut aluminum warehouse backlogs
Edited by : AL CIRCLE
1 min read
A trade group representing brewers is urging the London Metal Exchange to take steps to reduce warehouse backlogs that beermakers say boost the cost of aluminum used to make drinks cans.
The Beer Institute in Washington pressed the exchange to “end restrictive and outdated warehousing rules and practices that are interfering with normal supply and demand dynamics,” according to a statement provided yesterday by Christopher Thorne, a spokesman for the group. Members include MillerCoors LLC and Anheuser-Busch InBev NV (ABI)’s Anheuser-Busch unit, according to the organization’s website.
The beer-makers join LME users including industrial copper companies in complaining about long waits for metal in warehouses monitored by the exchange. While the LME tried to quell those concerns by raising load-out rates, analysts such as Duncan Hobbs of Macquarie Group Ltd. said the new rules won’t improve access to metals at locations with the biggest backlogs.
“We want the LME to end restrictive load-out practices that create supply-chain bottlenecks,” which have “led to a complete disconnect between LME aluminum prices and actual aluminum prices and prevent brewers and their suppliers from obtaining aluminum in a reasonable timeframe at fair-market prices,” the Beer Institute said in the statement.
The Beer Institute in Washington pressed the exchange to “end restrictive and outdated warehousing rules and practices that are interfering with normal supply and demand dynamics,” according to a statement provided yesterday by Christopher Thorne, a spokesman for the group. Members include MillerCoors LLC and Anheuser-Busch InBev NV (ABI)’s Anheuser-Busch unit, according to the organization’s website.
The beer-makers join LME users including industrial copper companies in complaining about long waits for metal in warehouses monitored by the exchange. While the LME tried to quell those concerns by raising load-out rates, analysts such as Duncan Hobbs of Macquarie Group Ltd. said the new rules won’t improve access to metals at locations with the biggest backlogs.
“We want the LME to end restrictive load-out practices that create supply-chain bottlenecks,” which have “led to a complete disconnect between LME aluminum prices and actual aluminum prices and prevent brewers and their suppliers from obtaining aluminum in a reasonable timeframe at fair-market prices,” the Beer Institute said in the statement.
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