LME Approves Hong Kong as Warehouse Location to Strengthen Asian Market Presence

Victoria Harbour, Hong Kong

On January 20, 2025, the London Metal Exchange (LME) officially approved Hong Kong as a warehouse location, expanding its global network of 32 locations across the USA, Europe, and Asia. This new development is seen as a strategic move to further enhance the LME’s presence in Asia, particularly in connection with Mainland China, the world’s largest consumer of metals.

Matthew Chamberlain, CEO of the LME, expressed his excitement about the approval, stating, “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.”

The inclusion of Hong Kong as an LME warehouse location follows significant interest from warehouses, landlords, and metal owners. Chamberlain further emphasized that the LME has been looking to expand its warehousing network to better serve the growing demand in the key consumption regions, especially in Asia.

The LME’s approval process for warehouse locations is rigorous, assessing factors such as the local fiscal and regulatory environment, along with access to robust transport networks. Hong Kong, with its established infrastructure, was found to meet these criteria and will be authorized to store a variety of LME-registered metals, including aluminium alloy, primary aluminium, copper, lead, nickel, tin, and zinc. 

The city will officially become an active warehouse location three months after the approval of the first warehouse company in Hong Kong. LME officials anticipate the first warehouse listing to be announced soon, marking a new chapter in the exchange’s efforts to improve market connectivity and meet the growing demand for metal storage in Asia.