HOTLINE: LME leaves producers off invite to air views on logistics

The London Metal Exchange left producers off the list of named stakeholders it is inviting to participate in its logistical review – though the exchange assured Hotline that they can contribute.

The London Metal Exchange left producers off the list of named stakeholders it is inviting to participate in its logistical review – though the exchange assured Hotline that they can contribute.

The logistical review is a key component in reforms that the LME drew up last year to tackle load-out queues across its warehouse network. Aluminium producer United Co Rusal has since taken the exchange to court over the new rules, claiming that they breach its human rights

While metal producers are able to participate in the review, along with the rest of the metals industry, Hotline noticed that the LME did not name them explicitly in the list of market participants it is inviting to contribute to the review, which is being carried out by consultancy group Oliver Wyman.

“A key element of the logistical review will be engagement with market participants, including (but not limited to) metals users, merchants, traders, warehouse operators, port authorities and logistics providers. The LME is keen to receive the views of as many market participants as possible,” the LME said in a notice to members.

Hotline wouldn’t normally dwell on such an omission, but then the LME has mentioned the “potentially cynical” contribution some parties, notably producers, made to its last big review. 

Still, a spokeswoman for the LME confirmed that producers are able to contribute, and said there was no particular reason for the omission.

Along with everyone else, producers can air their views in one-on-one meetings with Oliver Wyman that will take place later this month in London, Chicago and Singapore.

editorial@metalbulletin.com

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