(Liverpool) will lower the storage rents for polypropylene (PP) and linear low-density polyethylene (LLDPE) from the current rate of $0.54/tonne/day to $0.22/tonne/per day at the Antwerp (Belgium) and Baton Rouge/Houston delivery locations. At the Singapore and Gwangyang (South Korea) delivery locations, the rental rate will fall to $0.25/tonne/day.

Henry Bath believes the new storage rents will be more in line with the rents currently charged in the industry for bagged, palletized polymers stored privately off LME warrant. Both firms believe the move will give companies holding inventories in the form of warrants or futures contracts greater flexibility.

Since Henry Bath branded LME warrants are recognized by the major international banks as financeable documents, LME warrant holders are able to finance their physical stocks and often at preferential interest rates with finance providers. In return for prompt cash settlement for the full value of the stock, LME warrant holders can also offer up their warrants through their LME broker as good delivery against the LME plastics futures contracts at short notice. The LME notes that banks financing the inventory like this benefit and often acknowledge the additional security and flexibility of holding collateralized stock on LME Warrant, with competitive finance rates for their clients.

The Henry Bath Group provides storage and shipping of exchange-traded metals, plastics, and soft commodities, with operations in key ports across the U.S., Europe, Asia, and the Middle East. The company is licensed by the LME, the London International Financial Futures and Options Exchange, the Intercontinental Exchange, and the Dubai Gold & Commodities Exchange. — [email protected]