London 31/12/2014 - Warehouse companies will introduce marginally higher rents and free-on-truck (FOT) charges for storing metal under warrant in recognised sheds for the year starting April 2015, the London Metal Exchange said on Wednesday.
For the most part, warehouse operators charging the lowest rates have kept their rates largely the same while those charging a higher fee have brought in increases.
RENTS BY METAL
For primary aluminium, daily rents were raised at the upper end to 29-54 cents per tonne, the lowest level coming from Hokkai Mitsui Soko in Yokohama and the highest being Metro International, recently acquired by Reuben Brothers from Goldman Sachs, at a range of sites around the globe with 54 cents. The median rate is 50 cents, marginally up from 49 cents in the 2014/15 financial year.
For copper, rents ranged from 35 cents at Scale Distribution’s operations in Panama City to 50 cents, again from Metro International. A median of 46 cents shows an increase on last year’s 43-44 cents.
Lead rents also increased; up to 31-50 cents from 31-47 cents last financial year. Keystore in Bilbao and Hull kept its rates at 31 cents per tonne, whilst Metro International upped its levels to 50 cents. The median level for lead rose to 45 cents from 44 in the 2014/15 financial year.
Nickel rents have widened to 38-58 cents per tonne. The median has also increased to 54 cents from 49 cents last year. Scale Distribution in Liverpool and BLG Cargo Logistics in Bremen had some of the lowest levels, while Henry Bath, Metro and Worldwide Warehouse Solutions were at the higher end globally.
There is a similar movement in tin, where BLG posted the lowest levels at 35 cents per tonne with Metro, CWT and WWS in the higher numbers. The median number was up to 51 cents per tonne from the 49 cent average last year.
FOT CHARGES
For FOT rates, which are denominated in local currencies, in Europe base metals and steel will range from 22.4-32.5 euros per tonne, up from 25.8-31 euros per tonne last year, the LME said.
Levels in the US are also up and will be between $38.5-43 per tonne from last year’s $37.5-41.25 per tonne.
This year has been a turbulent one for warehouses and storing metal for financing, with a high profile US Senate investigation into the alleged manipulation of global aluminium markets, as well as court battles between Russian aluminium producer US Rusal and the LME.
(Editing by Martin Hayes)