CME approves aluminium storage sites in Taiwan and Hong Kong

Taiwan and Hong Kong are set to be added as the new aluminium warehouse locations on the Chicago Mercantile Exchange (CME) , according to three sources. This marks a move by CME to step up its challenge to the London Metal Exchange (LME) in Asia, particularly in locations that account for two-thirds of global aluminium production.

CME’s warehouse expansion plans beyond its current footprint in Malaysia, Singapore and South Korea also signify increasing aluminium trade flows from the Asian market.

Warehouse operators C. Steinweg and Pacorini Global Services, which already operate LME warehouses in Kaohsiung holding just under 10 per cent of total LME aluminium warehouses of 483,500 tonnes,  have already applied to list facilities in Kaohsiung, Taiwan, to handle metal deliverable against CME’s Comex aluminium futures. 

However, CME, Steinweg, and Pacorini have all declined to comment.

Also read: LME approves first warehouse facilities in Hong Kong

Two industry sources said the applications followed discussions with CME, whose representatives recently visited Taiwan to inspect warehouses and understand regulatory requirements.

Unlike Comex copper, where all metal is delivered duty-paid into US warehouses, Comex aluminium is delivered into bonded storage. This structural difference encourages traders outside the US to participate, enhancing liquidity in Asia, particularly as global Comex aluminium stocks have fallen to just 3,834 tonnes, down roughly 80 per cent since April 2025, with most of the remaining inventory located in Asia.

Approved Asian brands under Comex include Indonesia’s Inalum and Malaysia’s Press Metal, reinforcing the exchange’s regional integration.

To learn the LME aluminium stock trends forecasted for 2026, download our report: Global Aluminium Industry Outlook 2026 

Separate CME notices reveal that Henry Bath and GKE Metal Logistics have also applied to list aluminium storage facilities in Hong Kong, with GKE seeking approval for lead storage. However, neither Henry Bath nor GKE have commented on the request. 

Hong Kong’s emergence follows the LME’s approval of more than a dozen warehouse facilities there since early last year. While initial uptake was slow due to high rents and limited space, LME copper stocks in Hong Kong recently exceeded 10,000 tons after Chinese deliveries became profitable. Notably, there is currently no aluminium held in Hong Kong LME warehouses.

Comex’s aluminium futures contract, launched in 2019, only began gaining traction in 2023. Trading volumes accounted for 1.6 per cent of global activity that year, rising to 1.9 per cent in 2024 before easing to 1.2 per cent last year. By comparison, the LME controlled 80.6 per cent of global aluminium futures trade, while the Shanghai Futures Exchange held 18.2 per cent.

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