UPDATE 1-London Metal Exchange lists Panama City, Florida for copper
LONDON Oct 3 (Reuters) - The London Metal Exchange has approved Panama City, Florida, as a good location for exchange-registered warehouses to take delivery of copper, the LME said on Thursday.
Panama City, the main point of entry for copper from top producer Chile, will be ready to take delivery of copper three months after the LME approves the first warehouse company in that location, the LME said.
The LME approves and licenses a network of warehouses and storage facilities around the world. They are normally located in areas of net consumption and logistical hubs for the transportation of the material.
Panama City is close to leading North American wire and cable maker Southwire's plant in Georgia.
Southwire, the largest copper consumer in the United States, was part of a consortium of copper users that launched a legal challenge against the U.S. Securities and Exchange Commission's approval of JPMorgan Chase & Co's JPM.N physically backed copper exchange-traded fund.
The companies argued that the copper ETF would inflate prices for the metal and distort supplies.
The LME's copper committee had proposed the Panama City listing in April, sources familiar with the matter told Reuters.