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Cao Li

Hong Kong has taken a significant step in developing a commodities ecosystem by joining the London Metal Exchange’s (LME) global network of storage and delivery, according to Financial Secretary Paul Chan Mo-po.
At Tuesday’s launch of two of the eight warehouse facilities in the city certified by LME, Chan said the development was “of great significance for supporting [China’s] development strategy” and “enhancing Hong Kong’s status as an international financial and shipping centre”.
Establishing a delivery point near mainland China – one of the world’s largest markets for metal consumption and export – “will undoubtedly greatly reduce logistics time and costs compared with relying on overseas warehouses, thereby improving allocation efficiency”, he added.
China is the world’s largest non-ferrous metals producer and also the top consumer of six major non-ferrous metals: copper, aluminium, zinc, lead, nickel and tin. In 2024, the mainland’s trade in non-ferrous metals reached US$368.79 billion, an 11.4 per cent increase from the previous year.

The rising demand for metals has been driven by the growth of green technologies. The production of electric vehicles and solar panels requires metals such as copper, lithium, nickel and cobalt – all of which are traded on the LME.
China’s rapid expansion of artificial intelligence data centres, following the emergence of DeepSeek earlier this year, further fuels demand for copper.
In his policy address last October, Hong Kong Chief Executive John Lee Ka-chiu highlighted the importance of exploring new growth areas, including “building a commodity trading ecosystem and internationally accredited metal warehouses”.
Founded in 1877, LME is one of the world’s largest marketplaces for commodity trading, specialising in industrial metals like copper, aluminium and nickel. It traded 178 million lots of metals last year, amounting to 4 billion tonnes worth US$18 trillion, according to its website.
The exchange does not own or operate warehouses. Instead, it authorises companies to store LME-registered metals on behalf of warrant holders. It has 450 authorised warehouses across 34 locations worldwide.

LME has been considering China as a potential warehouse location since 2012, following its acquisition by Hong Kong Exchanges and Clearing (HKEX) for US$2.2 billion.
In January, Hong Kong joined LME’s global warehouse network to meet the increasing demand for the physical exchange of metals between mainland China and the rest of the world. In April, LME approved the first four warehouse facilities in Hong Kong, extending its global network to the doorstep of mainland China.
As of mid-July, all eight LME-certified warehouses in Hong Kong had begun operations. China Resources Logistics, in partnership with LME-listed warehouse operator GKE Metal Logistics, operates two of those facilities.
“Over 8,000 tonnes of LME-approved branded metals are stocked in the warehouse at the moment,” said HKEX chairman Carlson Tong Ka-shing.
“All our warehouses are currently at full capacity, so our next step is to expand [them],” said Jason Li, CEO of GKE Metal Logistics.


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HKEX

Hong Kong to benefit from joining London Metal Exchange’s warehouse network: Paul Chan

Hong Kong Financial Secretary Paul Chan Mo-po addresses attendees at a celebration ceremony on Tuesday. Photo: May Tse

From left to right: LME CEO Matthew Chamberlain; HKEX CEO Bonnie Chan; Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury; Yin Zhonghua, Deputy Director of the Liaison Office; Paul Chan Mo-po, Financial Secretary; Han Yuewei, deputy general manager of China Resources; HKEX chairman Carlson Tong; and Jason Li, CEO of GKE Metal Group. Photo: May Tse

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An employee checks aluminium ingots for export at Qingdao Port, Shandong province, in this March 14, 2010 file photo. Photo: Reuters

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Business

Commodities

The facilities in Hong Kong extend LME’s global network to the doorstep of mainland China


The facilities in Hong Kong extend LME’s global network to the doorstep of mainland China.


Hong Kong to benefit from joining London Metal Exchange’s warehouse network: Paul Chan

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The facilities in Hong Kong extend LME’s global network to the doorstep of mainland China

The facilities in Hong Kong extend LME’s global network to the doorstep of mainland China