A group of aluminum users, including MillerCoors LLC and other makers of drink cans, have said the London Metal Exchange's proposal to overhaul its controversial warehousing policy will "fall short" of solving the long wait times and inflated prices.
In a letter dated Sept. 9, the so-called "aluminum users group" called on the LME to implement even bigger changes, which they say will end long wait times, increase transparency for physical pricing and restore user confidence in the exchange.
Without that, there will be "more dysfunction, more manipulation and more harm", the letter from the group said. It also asked for a meeting with the LME.
The letter was in response to dramatic changes announced by the LME on July 1, aimed at soothing irate industrial users who say the LME's warehousing policy has led to record high physical premiums for aluminum and long wait times to take delivery.
While some of the group's suggestions may be hard to enforce, the seven-page letter will likely increase pressure on the LME and its new owner, Hong Kong Exchanges and Clearing , to deal with the problem as regulatory, legal and political scrutiny of the exchange intensifies.
Read more: U.S. aluminum users slam LME's plan to solve warehousing crisis | Reuters
In a letter dated Sept. 9, the so-called "aluminum users group" called on the LME to implement even bigger changes, which they say will end long wait times, increase transparency for physical pricing and restore user confidence in the exchange.
Without that, there will be "more dysfunction, more manipulation and more harm", the letter from the group said. It also asked for a meeting with the LME.
The letter was in response to dramatic changes announced by the LME on July 1, aimed at soothing irate industrial users who say the LME's warehousing policy has led to record high physical premiums for aluminum and long wait times to take delivery.
While some of the group's suggestions may be hard to enforce, the seven-page letter will likely increase pressure on the LME and its new owner, Hong Kong Exchanges and Clearing , to deal with the problem as regulatory, legal and political scrutiny of the exchange intensifies.
Read more: U.S. aluminum users slam LME's plan to solve warehousing crisis | Reuters
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