Insight
| |
7 Pages

LME response reaches critical mass


LME response reaches critical mass

Report summary

Following a three month consultation period that concluded at the end of September, the LME published this month a revised set of regulations to reduce queues in LME warehouses which store a "critical mass of metal".  The new rule stipulates that from April 2014, warehouses with withdrawal queues of more than 50 days (instead of 100 days in the original proposal) will be required to deliver out metal in excess of the minimum load out rates, according to a formula. The warehouses affected by...

What's included?

This report includes 1 file(s)

  • LME response reaches critical mass PDF - 516.86 KB 7 Pages, 0 Tables, 13 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • LME finally moves to cut queues
    • Queues set to fall
    • LME guards against front running
    • Financing deals still an attractive option
    • Unintended consequences
    • Conclusions

In this report there are 13 tables or charts, including:

  • Executive summary
  • LME finally moves to cut queues
    • LME queues per location using calendar days (assuming all weekdays are business days)
    • Share of cancelled warrants per metal in critical mass warehouse
    • Vlissingen
    • New Orleans
    • Johor
    • Detroit
    • Antwerp
    • LME response reaches critical mass: Image 8
    • LME response reaches critical mass: Image 9
    • Returns from aluminium financing at full LME storage costs
    • Returns from aluminium financing at off-warrant storage costs
    • Returns from zinc financing at full LME storage costs
    • Returns from zinc financing at off-warrant storage costs
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.