First Batch of Copper Arrives in Hong Kong Warehouses, to Join LME Global Storage Network

On July 2, the first shipment of copper was delivered to London Metal Exchange (LME)-approved warehouses in Hong Kong, marking a significant advancement in the Exchange's regional expansion strategy. LME records published on July 7 confirm that 100 tonnes of copper were received, with eligibility for contract delivery commencing on July 15 under official LME guidelines.

This milestone follows the LME’s approval, issued in April, of three warehousing operators in Hong Kong—later increased to five. These facilities are designated to store major metals traded on the Exchange, such as copper and nickel. While LME has yet to establish storage operations within mainland China, the Hong Kong presence serves as a strategic alternative, strengthening the city’s position in global commodities markets.

Industry experts regard this move as a catalyst for Hong Kong’s emergence as a key center for bulk commodity trading. The initiative presents a cost-effective delivery solution for metals in the region and enhances Hong Kong’s standing in global finance, maritime trade, and logistics. LME, owned by Hong Kong Exchanges and Clearing, formally recognized Hong Kong as a delivery location in January this year.

The Exchange has stated that the arrival of inventory at these accredited sites reflects market confidence in Hong Kong’s suitability as a metals delivery point. Warehouses that met LME’s logistics and transportation benchmarks in July will officially enter into operation. Per LME standards, certified facilities must provide at least three berths, maintain a minimum water depth of 11 meters, and operate no less than eight hours daily, five days a week.

On April 15, the LME disclosed the authorization of its first Hong Kong-based storage facilities. Coinciding with that announcement, the Hong Kong SAR Government pledged continued dialogue with industry participants and committed to offering technical support as needed.