In 2002, a US warehouse owner disrupted the metals industry by charging fees for securing cargo in the London Metal Exchange (LME) storage network. This led to higher costs for traders and accusations of unfair practices, with some metals being held hostage unless fees were paid. Fast forward to today, similar controversies have emerged as Istim Metals LLC, led by Michael Whelan, charges fees that impact the aluminum market.
Though Istim argues it follows the rules, critics claim it manipulates the system to its advantage. This ongoing battle highlights how warehouse companies continue to shape the LME’s landscape.