* Longest queue over 2 yrs in aluminium at Pacorini in
* New LME report shows queues in four locations, with three
(Adds details, background)
By Eric Onstad
LONDON, May 12 (Reuters) - Wait times to get metal out of
warehouse firms owned by trade house Glencore and bank Goldman
Sachs stretch up to two years, according the London Metal
Exchange's (LME) first report detailing backlogs at its global
network of depots.
Lengthy logjams at warehouses monitored by the LME, the
world's oldest and biggest market for industrial metals,
prompted bitter criticism by consumers and sparked a
wide-ranging reform programme at the exchange.
The LME's new report, covering the month of April, showed
the backlogs were concentrated at four warehouse locations and
with three major warehouse operators.
The LME already publishes data on inventory levels by
location and metal, but up until now has not published the
amount of stock held by individual companies.
A court ruling in March halted a key element of the reforms,
but the LME has pressed on with many other aspects, including
The LME report showed the longest queue was just over two
years, or 748 calendar days, for aluminium at Pacorini
warehouses in the Dutch port of Vlissingen and the second
longest was 683 days at Metro depots in Detroit.
Pacorini Metals is owned by commodity group Glencore Xstrata
and Metro International Trade Services is a unit of
The owners of warehouses have profited through rental
charges by letting long queues build up for buyers to withdraw
metal. Some also keep huge stocks of aluminium tied up,
unavailable to manufacturers, in long-term financing deals.
Other metals at Vlissingen and Detroit were also caught up
in the backlogs with queues of 63 days at the Dutch warehouses
and 186 days at the U.S. depots for copper, lead and zinc,
according the LME report.
The report appears on the LME website -- http://www.lme.com/metals/reports/stocks/queue/
Impala Terminals UK Ltd, owned by trade house Trafigura, was
the only other warehouse operator with queues. It had backlogs
of 27 days at its Antwerp locations for a range of metals,
including copper and zinc.
The fourth location with backlogs was New Orleans, where
warehouses owned by Pacorini had queues of 44 days in several
metals, including zinc, copper and lead.
(Reporting by Eric Onstad; editing by Susan Thomas)