Vlissingen, the Netherlands 20/08/2015 - Pacorini Metals is making a big push into ferroalloys handling and storing while the traditional LME business is becoming less attractive amid stricter and more complicated rules, FastMarkets has learned.
Although the warehouse company owned by Glencore has been active in ferroalloys for several years, it has mainly been a peripheral activity, which is now set to become a core business.
Pacorini Metals has made two senior appointments to support this strategy. Jacques de Villiers will take the newly created role of general manager, ferroalloys, having worked at recently acquired Access Freight in South Africa. Meanwhile, Russell Andersson has joined from Stemcor to drive the ferroalloys business development.
"Pacorini Metals already has strong ferroalloys expertise and relationships globally. Our customers are increasingly seeking global solutions and we are very excited about the appointments of Jacques and Russell to lead the continued development and coordination of this growing part of our business," commented CEO Peter Waszkis.
The company has a dedicated terminal for ferroalloys in Vlissingen with several sheds as well as crushing, storing and packing facilities.
The move comes at a time when the company's core business of handling and storing London Metal Exchange's traded metals is becoming increasingly complex and financially less attractive due to a series of rules related to load-out requirements, queue management and incentives.
More rules are likely to follow later this year and in 2016 because the LME has proposed to further increases in load-out rates as well as a ban on charging rent for metal in a queue - an industry-wide consultation is currently under way regarding these measures.
Pacorini still has a queue of eleven months in Vlissingen to get delivery of aluminium, but this down from nearly two years at one point.
(Editing by Tom Jennemann)