Eurofer opens against the unfair policy of LME

The European steel industry, in the person of Eurofer, has serious fears about the new rules proposing changes to the LME warehouses (London Metal Exchange) of July 1, 2013.

Eurofer believes that the rules for the release of goods from their warehouses LME should be reassessed taking into account three key elements: market conditions, metal users and enterprise storage features. The current proposal contributes to the manufacturers of metal, and not to end users, increasing the delivery time and raising the cost of the metal.

The proposal will not correct the available problems in the supply of metal, but will lead to long -term delivery and higher insurance contributions. This will negatively affect the final price of the metal, raising costs throughout the supply chain and, ultimately, for EU consumers.
This situation, according to the General Director of EUROFER Gordon Moffat, "not only artificially overperses the prices of LME metal, but will also fall a burden on end consumers, causing unnecessary costs."

In parallel with this, the practice of leasing the rental fee for companies that store metal, waiting for the delivery line, must be canceled or greatly reduced. Therefore, the current practice of LME should be changed, since LME proposals to reduce queues, according to Gordon Moffat, is an insufficient measure for solving the systemic deficiencies of LME warehouses.

LME should guarantee equal rules and conditions, as well as provide transparent and balanced functioning of the metals market for all participants: manufacturers, merchants and end consumers. EUROFER presented its proposals to the LME Council, urgently calling for adequate measures to increase the flexibility of the metals market and their liquidity in order to protect the EU consumers from unnecessary costs.