How Hong Kong could ease its ‘positive problem’ of full metals warehouses

15 LME-approved warehouses are already full, underscoring city’s ambition to be a commodities centre – and its urgent need for more space Just over a year after the London Metal Exchange (LME) approved its first batch of warehouses in Hong Kong, the city now hosts 15 facilities run by seven operators, with close to 25,000 tonnes of metals stored. Chamberlain described it as a “very positive problem” – though one not easily solved. What is the LME, and when did it set up warehouses in the city? Globally, LME-approved third-party operators run about 450 warehouses across the US, Europe and Asia, including Malaysia and South Korea, to store metals for investors and end users to trade or use to secure financing from banks.

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