SINGAPORE May 2 Taiwan's port of Kaohsiung is
hopeful its campaign for London Metal Exchange delivery location
status is nearer success, despite the sale of the bourse to a
Hong Kong company.
Traders say that the allure of the port is fading as China
is widely expected to allow the LME to list locations on the
mainland in the next few years after Hong Kong Exchanges and
Clearing's (HKEx) $2.2 billion purchase of the LME
Kaohsiung filed an amended application for listing last
month, the port authority said on Thursday.
"We expect that the LME will accept Taiwan's positive
amendments regarding tax and customs reasons," an official from
the port told Reuters, adding that the timing of the listing is
now in the hands of the exchange.
The LME declined to comment.
Sources said the LME was most likely to make any new listing
announcements during LME week in Hong Kong in late June.
The LME approves and licenses a global network of warehouses
that are in areas of net consumption or along major trade
routes, so that metal can be delivered against futures positions
and consumers can access a local stockpile of metal as a last
It began looking in earnest at Taiwan's southern port of
Kaohsiung as a listed delivery point in 2010, but the port's
initial application failed because it did not meet the LME's
Taiwan is close to Guandong province, one of the major
copper and aluminium fabricating bases in top metals consumer
(Reporting by Melanie Burton, editing by William Hardy)