SINGAPORE, May 2 (Reuters) - 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 last year.
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 resort.
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 customs criteria.
Taiwan is close to Guandong province, one of the major copper and aluminium fabricating bases in top metals consumer China. (Reporting by Melanie Burton, editing by William Hardy)