LONDON: Queues to take aluminium out of London Metal Exchange-approved warehouses owned by ISTIM UK in Port Klang, Malaysia, jumped to 118 days at the end of January from zero in December, data from the exchange showed on Monday
Cancelled aluminium warrants -- material earmarked for delivery -- in ISTIM's Port Klang warehouses stood at 309,800 tonnes, or 60 percent of the 516,188 tonne total, at the end of last month.
Aluminium stocks in ISTIM warehouse have been rising over the past year. In Port Klang they stood at 22,225 tonnes in January 2018, with cancelled tonnage of 2,500 tonnes. There were 30,000 tonnes of cancelled aluminium warrants at the end of December.
A large amount of aluminium warrants were cancelled in January and only 9,475 tones were delivered out of ISTIM Port Klang.
LME rent-capping rules mean that full rent at 56 cents a tonne per day for cancelled aluminium warrants is only payable for 30 days, dropping to half for a further 20 days and zero rent after 50 days. - Reuters