LONDON, Nov 16 (Reuters) - 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 another metal.
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