London 29/01/2016 - The London Metal Exchange (LME) will give its listed warehouse companies a week to lower their rent and free-on-truck (FOT) charges before they go live on April 1, FastMarkets understands.
"The window will be a week from the publication of the [members'] notice," a warehouse source said on Friday following an extraordinary warehouse committee meeting. "Higher [rents and FOTs] is not allowed - it can only go lower."
The notice could be sent "in the next few weeks", another well-informed source said.
The LME declined to comment.
FastMarkets reported on Tuesday that the LME had scheduled an extraordinary meeting for this Friday to offer operators one last chance to reduce the rent and FOTs they submitted in December because it felt they were were "out of line" with market levels.
(Editing by Mark Shaw)