@sahdmetalcrew The crew goes over the situation involving LME warehouses!!! |me #metal #scrap #scraplife #team #update #work #information #scrapyard #warehouse #storage #price #pricing #value #london #reels
♬ original sound – sahdmetalcrew
The London Metal Exchange which is the world center for the trading of industrial metals, is having big transparency problems with their metal warehouses
This could cause a complete shift in market confidence with the LME along with other major repercussions as well.
The LME’s stock reports have been undermined by sudden arrivals of uncounted metal, which again have caused people to lose trust in their market signals.
Because of this, they must find a way to make their stock reporting trustworthy to gain back confidence from investors and industrial users, which they say they are working towards now.
In the past we also discussed many times the embarrassing trading suspension from the LME that happened last March in the nickel market, which just was another wrong step overall.
This all comes into play because if the LME comes out with inventory numbers that are lower than what they are, this would then artificially make metal prices higher, and vice versa.
So hopefully the efforts of the LME to report these numbers will come to fruition, but we are asking why this hasn’t happened sooner.