London Metal Exchange is in discussions about establishing
warehouses in China and eventually hopes to set up delivery
locations in Southeast Asia.
LMEs global warehouse network to China will be a priority
for the LME and its owner, Hong Kong Exchanges & Clearing
Ltd. (HKEx), Liz Milan, managing director of LME Asia, told
AMM sister publication Metal Bulletin. "We
continue to speak to the relevant people in China, and without
a doubt Chinese warehousing remains very important to the LME
and something that we are looking to try and get on board."
had hoped that the HKEx takeover of the LME would expedite the
setting up of LME warehouses in China. Milan, who also is head
of Asia commodities at HKEx, declined to comment on the status
of any discussions about Chinese warehousing.
The LME this week
listed Kaohsiung, Taiwan, as a delivery point for base metals
and aluminum alloy, taking its total number of Asian locations
to nine. Kaohsiung is expected to provide better accessibility
to China-based users of the bourse due to its proximity to
In the longer term,
the LME also hopes to set up additional delivery locations in
the region, including Thailand and Vietnam.
"Its long time
frame, because you have to have all the fiscal regimes in
place; from determining and identifying an area to becoming a
location, you have to get past many things," she said. New
locations need to meet conditions including those related to
the tax-free movement of material into LME warehouses. "Some
markets are more established than others around there," she