Traders proposing LME-approved facilities in Shanghai

Traders are proposing to build up London Metal Exchange-approved storage warehouses for non-ferrous trading in Shanghai's Yangshan port, China Nonferrous Metals News reported on Wednesday.

The LME-approved facilities, once completed in Shanghai, will become the first of its kind in China and will help speed up realization of the city's aspiration to become a commodities hub in the Asia-Pacific region, analysts said.

The municipal government said Shanghai will more than double its bonded warehouse space this year.

A source with Shanghai's administration of tariff-free zones said conditions for building up LME-approved facilities are mature. After LME was acquired by Hong Kong Exchanges and Clearing Limited in 2012, expansion of business in Asia, especially in China, is anticipated.

The continuation of China commodities market's opening up to the global market will also help operations of LME-approved facilities in China when they are built up, the source said.

Currently, there are more than 700 LME-approved warehouses and storage facilities in about 40 locations across the US, Europe and Asia.