LME considers relaxing rules to enhance Hong Kong's status as a metals hub

On July 1, according to four industry sources, the London Metal Exchange (LME) is considering relaxing rules to enhance the status of China Hong Kong as a metal storage site. Two of the sources said executives from the Hong Kong Stock Exchange (HKEx), the owner of LME, had asked warehousing companies what obstacles needed to be eliminated to make Hong Kong feasible for warehousing. In a consultation document in March this year, the LME proposed outdoor storage of aluminum as an option on a "site-by-location assessment" basis. Four sources said the proposal was mainly aimed at Hong Kong because there is limited space suitable for warehousing there. The exchange briefly allowed aluminum outdoor storage in the mid-1990s, but later canceled the practice due to concerns about weather damage and safety issues.