The London Metal Exchange is seeking agreement from its network of metal warehouse owners to cut the rents charged for storage, which could boost the amounts of metal registered under LME warrant and improve transparency.
Rents for aluminium on warrant, which gives the material LME backing, currently averages around 54 US cents a tonne. Of that the exchange earns 1.1%. Rent for metal not under LME warrant is typically 10 cents or below.
