The decision means Hong Kong is the 33rd location in the LME’s network, which stretches across the USA, Europe, and Asia.

Matthew Chamberlain, LME CEO, stated, “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.”

Chamberlain also highlighted the significant interest from warehouses, landlords, and metal owners in the region, noting anticipation for the announcement of the first LME warehouse listing in Hong Kong.

The LME evaluates potential warehouse locations based on factors such as local fiscal and regulatory frameworks and access to robust transport networks.

Hong Kong will be authorised to store various LME-registered metals, including aluminium alloy, copper, lead, nickel, tin, and zinc. The location will become active three months after the first warehouse company is approved.

There are currently more than 465 LME-approved warehouses in 32 locations globally. However, the LME does not own or operate the warehouses. Instead, it authorises warehouse companies and the warehouses they operate to store LME-registered brands of metal on behalf of warrant holders. 

They also issue LME warrants through their London agent for material delivered to their approved warehouses.

The post Hong Kong Approved as Warehouse Location By London Metal Exchange appeared first on LeapRate.