New LME Warehouse Rules Could Help Limit Metal Premium Spikes

The proposed additional delivery requirement at warehouses monitored by the London Metal Exchange should help minimize the potential for spikes in metal premiums that are caused by long wait times at some locations, according to Barclays Plc.

As quoted in market news:

Any increase in the load-out rate for non-dominant metals will go some way towards addressing the spill-over effect of long, mainly aluminium, queues on other metals. However, it does not tackle the issue of long queues for aluminum or zinc.

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