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LME to offer hedging tool for aluminium buyers

Regional premium contract designed to tackle rising costs

The London Metal Exchange Monday said it would offer a new way for aluminium buyers to protect themselves from the rising cost of accessing metal from the exchange's storage network.

A regional aluminium premium contract will allow consumers such as can and auto makers to hedge against the premiums paid to producers on top of the price of metal, and forms the latest part of the LME's contentious reforms to its global warehousing system.

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