LONDON Nov 16 The London Metal Exchange (LME)
expects new proposed changes to its warehousing rules to go some
way to solve problems in the network of warehouses it monitors,
but would continue monitoring the situation, chief executive
Martin Abbott said on Friday.
The LME on Thursday proposed a new rule requiring warehouse
companies to deliver out an extra 500 tonnes of metal if they
already have commitments to move out a large consignment of
The LME, the world's biggest base metals marketplace, has
been reviewing warehouse load-out rates as it tries to deal with
backlogs appearing across its global warehouse network.
Abbot told a news conference he expected the new rule, if
adopted, would come into effect on April 1 next year. "If 500
tonnes doesn't work we will review it, but we expect it to
work," he said.
(Reporting by Silvia Antonioli and Maytaal Angel)