London 11/07/2016 - The queues to take aluminium out of LME-registered warehouses increased in May due to a series of cancellations, according to the exchange's latest queue report.
The queue for aluminium at Pacorini's sheds in Vlissingen increased to 336 calendar days (233 working days) or 11 months as of May 31 from 304 calendar days (217 working days) a month previously, it said.
A series of cancellation in the Dutch city in May amounted to 141,925 tonnes, according to LME daily stock data. But two rewarrantings of 88,575 and 37,700 tonnes early in May are behind a 32-days jump in the length of the queue.
Cancelled aluminium warrants there stood at 1,132,000 tonnes while on-warrant availability was 1,397,100 tonnes, according to LME data on May 31.
Other LME-registered locations had no queue as of May 31, according to the report.
The LME has introduced tough reforms aimed at shortening queues over the past three years, targeting warehouse companies with delivery times exceeding 50 calendar days. Rules such as linked load-in/load-out rates and queue-based rent capping (QBRC) are now in force.
(Additional reporting by Kathleen Retourne, edited by Mark Shaw)