26 SEPTEMBER 2013Reuters
Rusal asks LME to postpone proposed warehouse overhaul
Edited by : AL CIRCLE
1 min read
Russia's United Company Rusal , the world's biggest producer of aluminium, said on Wednesday it has asked the London Metal Exchange (LME) to postpone the proposed overhaul of rules that govern its global warehouse network.
Backlogs in metal deliveries from LME warehouses have inflated spot aluminium surcharges or premiums, sparking complaints from consumers. U.S. regulators are meanwhile enquiring whether premiums have been artifically inflated.
The complaints and political pressure have led to an LME proposal to overhaul its delivery system from next April.
In its recommendations for an alternative overhaul, Rusal has asked the LME to exapnd the global network of warehouses and encourage new, independent warehouse operators to enter into the business.
Rusal also asked the LME to postpone the current proposed rule change pending industry consultation that would reveal actual ownership of metal in warehouse queues, the company said in a statement.
Backlogs in metal deliveries from LME warehouses have inflated spot aluminium surcharges or premiums, sparking complaints from consumers. U.S. regulators are meanwhile enquiring whether premiums have been artifically inflated.
The complaints and political pressure have led to an LME proposal to overhaul its delivery system from next April.
In its recommendations for an alternative overhaul, Rusal has asked the LME to exapnd the global network of warehouses and encourage new, independent warehouse operators to enter into the business.
Rusal also asked the LME to postpone the current proposed rule change pending industry consultation that would reveal actual ownership of metal in warehouse queues, the company said in a statement.
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