Queues that have built up for aluminium at London Metal Exchange-registered warehouses in Port Klang, Malaysia are not structural queues, but reflecting real physical market conditions, the exchange chief executive said.
Speaking at the LME Week seminar on Monday October 19, Matthew Chamberlain said the situation is very different to the large queues that built up on the LME network previously.
"We have growing confidence that the policy changes around warehouses in the decade since the financial crash have indeed left us in a better position," Chamberlain added.
"Once again as we saw 10 years ago, we have seen a significant inflow of metal - largely in Malaysia," he said.
"There are some 'operational' queues in Port Klang, those queues are about 61 days which is fundamentally different to the 'structural' queues of many hundreds of days 10 years ago."
There are currently...