LME proposes faster listing process for new metal brands

The London Metal Exchange proposed faster listing process for new metal brands on Friday and said it was seeking consultation with members on indelible marking for aluminum, zinc and lead, and outside storage of primary aluminum in Hong Kong.

The world’s oldest and largest industrial metals exchange also said it would proceed with all proposals outlined in the consultation section of a March discussion paper on strengthening its physical market infrastructure.

The proposals in the new consultation are:

• Cut the minimum production period before a brand listing application can be considered from 12 months to six months.
• For copper, producers would need six months’ production before applying and 12 months before Stage Two testing begins.
• For aluminum, lead, zinc, nickel and tin, producers would need only six months’ production before progressing to Stage Two.
• For cobalt, producers would need six months’ production before applying and 12 months before listing.
• Permitting primary aluminum to be stored outdoors in Hong Kong, where limited indoor space has hindered its role in aluminum arbitrage between mainland China and the LME warehouse network. Reuters reported this plan, citing industry sources, on July 1.
• Requiring permanent production cast markings on new brands and shapes of primary aluminum, lead and zinc to avoid problems caused by damaged or detached labels.

Responses to the consultation paper are due by September 11.

(By Polina Devitt; Editing by Joe Bavier and Ros Russell)