The London Metal Exchange (LME) may have to return to the drawing board as enthusiasm wanes for its third attempt in as many years to head off a crisis over its warehouse system. Storage firms owned by big banks and trade houses have made money by building stocks in LME-registered warehouses and allowing queues to grow for clients seeking to withdraw material, all the time charging rent. End-users say that has caused waiting times of more than a year, distorting supplies and inflating physical prices to record highs – especially for aluminium, which is in oversupply.
See http://www.mineweb.com/mineweb/content/en/mineweb-fast-news?oid=205930&sn=Detail.