COPPER INDUSTRY ASKS LME FOR STRATEGY STATEMENT

  Representatives of the International
  Wrought Copper Council (IWCC) and major copper producers have
  told the London Metal Exchange (LME) a clear statement of its
  forward strategy would lead to a better understanding between
  industry and the LME.
      In a press release the IWCC said that at the latest meeting
  between the copper industry and the LME to discuss the new
  clearing house system, industry expressed grave concern about
  latest proposals made by at least one LME member for a cash
  cleared market to replace the planned clearing system which
  will retain the prompt date settlement basis.
      Copper industry delegates told the LME a decision to change
  (the planned clearing system) would indicate a fundamental
  change in the function of the LME and in its service to the
  industry, the release said.
      By deterring industry use of the Exchange for hedging and
  physical needs it would remove many of the unique advantages
  currently offered by the LME and make it indistinguishable from
  non-trade orientated markets such as Comex.
      The LME had to decide whether dealer convenience should
  take a higher priority over customer satisfaction, industry
  delegates said.
      The IWCC release also said the LME had confirmed that no
  change would be made to the clearing system planned to start on
  May 29. But it had indicated that consideration would be given
  in due course to the cash clearing proposal, made by
  Amalgamated Metal Trading at a LME members meeting last week.
      A copper industry spokesman suggested that some assurance
  of permanence in the new clearing system would remove industry
  fears of uncertainty resulting from an endless process of
  review and change, the press release said.
  

