Jamaica's mining sector could be affected by new warehouse rules implemented by the London Metal Exchange (LME).
The Wall Street Journal reported that shares of major aluminum producers with ties to Jamaica, Alcoa and UC Rusal, have dropped as investors anticipated that the warehouse rules could depress aluminum prices.
The LME, the world’s largest metals exchange, has announced final rules designed to speed up the delivery of supplies out of its global warehousing network.
The rules would essentially force warehouses to deliver more metal than they take in.
Analysts say it will pressure aluminium prices lower.
Metal users like Coca-Cola have complained that bottlenecks to retrieve aluminum from warehouses overseen by the London Metal Exchange were inflating their costs.
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