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LME aspires to Chinese warehouses

Lme entrance sign

The London Metal Exchange (LME) says it is working hard to establish warehouses in China but it has yet to persuade the authorities to change policy.

The LME manages a network of warehouses around the world as part of its operations at the centre of global non-ferrous dealing, accounting for an estimated 80% of transactions.

This footprint has grown over the years but the company has yet to win a foothold in China.

The challenge was raised at the Amsterdam convention of the Bureau of International Recycling by Christian Schirmeister, senior consultant with the Amalgamated Metal Corporation, a ring dealing member of the exchange.

He told delegates that the lack of an LME warehouse in China was a political rather than a trading issue.

“The Chinese government is not allowing tax-free zones at the moment,” he said.

“A lot of work has been done there and we are hoping that, in the foreseeable future, we will see warehouses in Shanghai to get a better feeling for markets in that area.”

The LME was acquired by Hong Kong Exchanges & Clearing in December 2012.

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