Later in March, the LME said that no further "irregularities" had been found in LME-warranted nickel stocks following a 100% inspection of all bagged nickel warrants in LME-licensed warehouses. (Reporting by Harshit Verma in Bengaluru)
May 12 (Reuters) - The London Metal Exchange (LME) will
require warehouse companies to carry out additional checks on
stocks of warranted nickel following irregularities earlier this
year, Bloomberg News reported on Friday.
The tests include using magnets and metal detectors, as well
as a "touch inspection" which involves warehouse workers feeling
the outside of bags to verify that the material inside is of an
appropriate size and shape, Bloomberg reported citing people
familiar with the matter.
The exchange is also asking warehouses to weigh bags of
nickel as they are delivered out of the LME system, Bloomberg
reported.
Earlier in March, nickel delivered by LME-approved warehouse
firm Access World to commodity traders Trafigura and Stratton
Metals turned out to be stone, two sources with knowledge of the
matter said.
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