LME dismisses Glencore complaint over access to metal in Malaysia: sources

LONDON (Reuters) – The London Metal Exchange (LME) has dismissed a complaint from miner and commodity trader Glencore over its inability to take fast delivery of aluminum from warehouses owned by ISTIM UK in Port Klang, Malaysia, two sources familiar with the matter said on Monday. Sources had told Reuters earlier this year that Glencore’s complaint higlighted uncertainties in the LME’s storage rules, after industry reform sparked by accusations from consumers that banks and traders were hoarding metal in LME warehouses. “The LME has recently received and decided a formal complaint in respect of warehousing. The LME would not comment on that specific complaint, or confirm the parties involved,” the LME said in a statement. Both Glencore and ISTIM UK declined to comment. London-listed Glencore bought 200,000 tonnes of aluminum on the LME late in January and made preparations to take that metal from ISTIM’s warehouses. Metal entering the LME’s global warehouse storage network is issued with a title document called a warrant. To take delivery of metal from the network buyers need to cancel the warrants, thereby earmarking it for delivery. To get the metal out quickly, Glencore moved to complete the formalities and create a queue of more… continue reading

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