The London Metal Exchange (LME) has today confirmed its approval of Hong Kong as an LME warehouse location. Hong Kong will join the LME’s existing network of 32 locations spanning the USA, Europe and Asia.
Matthew Chamberlain, LME CEO, said: “The addition of Hong Kong to our global warehousing network is an exciting development, providing warehouse facilities closer to the metals hubs of Mainland China than ever before. Mainland China is the world’s largest consumer of metals, and with its outstanding commercial infrastructure, Hong Kong provides the natural hub for connectivity to the Chinese market that is so important to market participants and the wider metals industry.
“We have had significant interest from warehouses, landlords and metal owners in the listing of Hong Kong as a metals delivery point and we look forward to being able to announce the first LME warehouse listing.”
The LME considers approvals for warehouse locations with the objective of securing a widespread network around the world in the most important areas of net consumption. Locations are assessed against a variety of factors such as local fiscal and regulatory systems and access to a good transport network.
Hong Kong is permitted to store LME-registered aluminium alloy, primary aluminium, copper, lead, nickel, tin, and zinc, and it will become an active warehouse location three months after the approval of the first warehouse company.
