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LME Roundup – LME to Launch New Aluminum Contracts, but Are They Too Late?

June 8 –London Metal Exchange to Launch New Range of Aluminum Contracts: Only warehouses without any queues will be eligible to issue premium contracts,” The Wall Street Journal

“The London Metal Exchange on Monday said it is launching a new range of aluminum contracts to allow users to protect themselves against rising regional charges that occur in addition to the cost of the metal.  The decision is part of a broader strategy by the LME to keep a handle on costs for market participants and follows a rule change in April to increase the rate at which metal is moved out of its warehouses.”

June 8 –METALS-Aluminium drops after data shows high Chinese exports,” CNBC

June 9 –LME delays launch of new contracts,” American Metal Market

June 11 –Emirates Global Aluminium Cuts 250 Jobs Amid Global Oversupply,” Bloomburg

June 15 –LME’s new aluminum premium contracts: too late?” Reuters

“Tumbling aluminum premiums on global physical markets mean new contracts aimed at mitigating the impact of higher costs, due to be launched by the London Metal Exchange (LME) in November, may be too late to serve their purpose.”

June 17 –China’s aluminum import premiums rangebound at $90-$110/mt CFR,” Platts

June 19 –Alcoa Inc. Challenges CFTC Authority to Regulate LME Aluminum Warehouse Reform,”

“Currently, with falling LME prices and much-reduced physical delivery premiums even a combined all in price is below cost for many smelters, hence Alcoa’s concern that the LME’s rule changes are not drastic enough to precipitate further falls. The same worries were behind Rusal’s challenge to earlier proposed rule changes last year, a challenge that eventually failed in the English High Courts.”

July 2 –London Metal Exchange has plan to curb long delays,” Business Day

The London Metal Exchange (LME) is planning additional measures to speed up waiting times for receiving metal from warehouses. The LME wanted to reduce the rent that warehouse operators charged for metal that had been in a queue for a long time and increase the amount that was delivered on a daily basis.”

July 4 –Chinese aluminum producers will have to cut production: Rusal exec,” The Australian

“Chinese smelters “expected the price to recover but it’s already [been] more than six months. The price is very low and these producers are suffering from losses, so they have to start shutting down,” said Oleg Mukhamedshin, deputy chief executive of United Rusal Co., in an interview this week’

July 6 –Aluminum premium up for first time in months,” American Metal Market


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