The London Metal Exchange is planning a major reform, which may introduce a mandatory daily withdrawal of 1.5% of warrant metal to replace the current warehouse rent cap policy.

This initiative aims to enhance inventory liquidity and optimize metal delivery efficiency. If the new regulations are implemented, warehouse operators will be required to release a specified proportion of registered warehouse warrant metals on a daily basis, breaking the previous pattern of warehouse stockpiling. By increasing the supply in the spot market, this plan is expected to alleviate supply chain bottlenecks and promote the efficient operation of the global metal trading system.