The London Metal Exchange (LME) will implement new measures in May 1st to reduce the delivery of the goods, but the move has made it even more serious.
According to Reuters, since the end of 2, a major warehouse in Holland to extract metal aluminum queuing time extended more than doubled, reaching about eight months. Analysts and traders quoted analysts as saying that the owner of the Lixin port, Holland port,, Hong Kong, the owner of the warehouse before the new regulations come into effect in the delivery notice, hoping to get a waiver or reduce the time of storage charges.
"Any form of reform may have unexpected results," said RobinBhar, head of research at the French bank in London. Due to the expected to be based on queuing time limit (QBRC) as well as some other reforms, there has been a large number of inventory cancellation."
When the owner of the stock suggests that he wants to remove the metal from the warehouse, the inventory is counted as "cancellation" ".
Wall Street knowledge previously mentioned that the financial crisis occurred in 2008 swept the world, but also a heavy blow to the global demand for metals. A large number of spot is full of warehouse. While banks and commodity traders took the opportunity to borrow money at low interest rates, the metal is stored in the warehouse and through the futures market to a higher price will be sold at a higher price.
Some investors even directly involved in the metal warehousing industry. Goldman Sachs in the financial crisis after the purchase of a metal warehouse MetroInternationalTradeServices. The company has since made millions of bank notes, is one of the oldest bank's most profitable business. Metals queuing out of the library for the warehouse can be used to control the spot metal storage time to influence the supply and spot agio, also can earn extra storage charges.
The beneficiaries of the above business models also include aluminum producers. According to the British "Financial Times" article, taking advantage of the aluminum spot from LME registered warehouses library needs to wait for a long time, from Alcoa to Russian aluminum, aluminum production giants positive production to meet the needs of banks and traders.
These have warehouse large banks and traders through to delivery queues to benefit, consumer dissatisfaction caused. In this regard, LME introduced the new deal, the restrictions on the rent set, thereby eliminating the maintenance or cause of the delivery of a lengthy team of financial incentives. The new regulations, queuing up to a library of more than 30 days after the rent, rent by half, more than 50 days after the cancellation of rent.