Commodities
Traders Stuck in LME Queue Vent Fury at Warehouse’s Fee Hike
- Traders complain as Istim hikes fee to re-deliver metal to $50
- Increase comes as price spreads make it costly to keep metal
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The London Metal Exchange is looking into a sharp administrative fee hike at warehouse operator Istim Metals, after receiving complaints from traders who say the increased cost is putting them under pressure and fueling distortions in the aluminum market.
Istim is one of the main operators in the LME’s warehousing network, which plays a crucial role in the plumbing of global metals markets by allowing traders to make or take delivery of metal when their futures contracts expire.