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LME Roundup – July 29 through September 16

July 30 – “LME And Rusal Back In U.K. Court Over Warehousing Rules,” The Wall Street Journal

The London Metal Exchange went back to court in the U.K. as it tries to change the way metals are delivered around the world, in an attempt to reduce controversial delays. The LME had been blocked by UC Rusal the world’s largest aluminum producer, which claims the LME has not consulted its market fairly regarding the planned rule changes.

July 30 – “Aluminum supply glut threat said aggrandized,” American Metal Market

August 4 – “LME OFFICIALS: Aluminium back above $2,000 in officials,” Metal Bulletin

August 5 – “BRIEFING: Snap analysis of LME’s first commitment of traders report,” Metal Bulletin

August 6 – “Average daily London Metal Exchange turnover up 3% on year in H1 2014,” Platts

August 6 – “LME earnings fall as staff, lawsuit costs rise,” American Metal Market

August 13 – “Aluminium futures weaken on global cues,” The Economic Times

NEW DELHI: Aluminium prices fell by 0.36 per cent to Rs 124.50 per kg in futures trading today as speculators reduced their positions amid weak global cues.

August 13 – “LME aims to protect premium contracts,” American Metal Market

The LME is planning to launch four regional premium contracts as it seeks a way for market participants to hedge the full price of aluminum, comprising the LME price plus a premium for available metal in several locations.

Proposed contracts are the U.S. aluminum premium, the Western European aluminum premium, the Eastern Asia aluminum premium, and the Southeastern Asia aluminum premium, the documents show.

August 14 – “LME supports billet contract despite stocks falling to zero,” American Metal Market

The London Metal Exchange has “reaffirmed” support for its steel billet contract, despite warehouse stocks for the contract dropping to zero. The last remaining 520 tonnes of metal were withdrawn from a warehouse in Antwerp, Belgium, according to an Aug. 13 stock report from the LME.

August 14 – “Midwest aluminum premiums trend upward,” American Metal Market

August 22 – “LME OFFICIALS: Aluminium market looks for cracks in prices, premiums after 20% rally,” Metal Bulletin

August 26 – “LME wins dismissal in aluminum antitrust suit,” American Metal Market

A judge has dismissed the London Metal Exchange as a defendant in a U.S. antitrust lawsuit alleging manipulation of aluminum supplies to drive up prices on the grounds of sovereign immunity.

Judge Katherine B. Forrest of the U.S. District Court in New York said in an order that the LME is an organ of a foreign state and was not engaging in commercial activity when it alegedly manipulated the load-out rules for aluminum.

August 26 – “Aluminum prices hit 18-month high,” American Metal Market

August 26 – “London Metal Exchange dismissed from U.S. price-fixing lawsuits,” Reuters

August 29 – “LME’s warehouse antitrust worries fade,” American Metal Market

September 1 – “London Metal Exchange to push for reform after US judge dismisses suits,” South China Morning Post

An LME spokeswoman told the South China Morning Post the London-based commodities exchange was pleased to have been granted immunity from the aluminium class action lawsuits and would continue to carry out its warehouse reform plans. 

“The court has recognised the important regulatory function which the LME performs and that the LME has a duty to the entire metals community to run a fair and orderly market,” she said. “We continue to take action to manage queue-related issues in accordance with our obligations and we remain committed to do everything in our power to remedy these issues.”

September 1 – “Aluminium strengthens on industrial demand, global cues,” Business Standard

September 2LME announced Robert Peston to be the keynote speaker for its Metals Seminar on October 20 in London, U.K.

September 4 – “COLUMN-US judge finds inefficiency, complexity but no aluminium conspiracy,” by Andy Home, Reuters

The dismissal by U.S. District Judge Katherine Forrest of a barrage of lawsuits alleging foul play in the aluminium market does not mark the end of this particular story.Only the London Metal Exchange (LME) appears to be in the clear after the same judge ruled earlier that as an “organ” of the UK government the LME is immune from any lawsuit under the Foreign Sovereign Immunities Act.

Some of the aluminium companies alleging antitrust violations against LME warehouse operators and their parent companies will be allowed to replead their case, if they choose to do so.


September 4 – “LME says aluminium premiums contract is next focus after LME Clear,” Metal Bulletin

LME Clear was given the go-head by the UK’s Bank of England to be a central counterpart under European Markets Infrastructure Regulation (EMIR) rules. This development clears the way for the LME to focus on other projects, including new contracts such as the aluminium premiums contract.

September 10 – “CFTC keeping tabs on LME amid aluminium warehousing crisis,” Reuters

In an interview with Reuters, Timothy Massad, the newly installed chairman of the Commodity Futures Trading Commission (CFTC) said the regulator has been in touch with the LME as it prepares to launch a new aluminium contract in a bid to ease concerns that global aluminium pricing is broken.

“We’ve had a dialogue with them (the LME) about some of those issues and will continue to do that,” he said.

September 10All You Need to Know about LME Clear, LME

September 11 – “Judge asked to reinstate LME in lawsuit,” American Metal Market

U.S. aluminum purchasers have asked a judge in U.S. District Court in New York to reconsider a decision dismissing the London Metal Exchange from an antitrust lawsuit, claiming that the LME is not entitled to foreign sovereign immunity.

September 11 – “LME to launch aluminium premium contract in Q2 2015,” Reuters

The London Metal Exchange (LME) slightly delayed the launch its aluminium premium contract to the second quarter of next year and also said on Thursday it would hold off from further warehouse reforms ahead of a court appeal ruling.

High premiums are partly due to long backlogs at LME-certified warehouses and the LME said on Thursday it would need to ensure that the new contract is not impacted by queues.


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