https://www.scmp.com/rss/308970/feed Set up in 1877 to provide a venue for trade conducted among metal merchants in London, the LME was sold in 2012 to the operator of the Hong Kong stock exchange. In 2013, it was a defendant in lawsuits accusing Goldman Sachs, JP Morgan and Glencore-Xstrata of rigging the aluminium market. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Mark Magnier Mark Magnier China has crafted markets, mechanisms and incentives as the world’s largest buyer of commodities in a bid to free itself from its dependence on the US dollar, but the biggest threat to Washington’s global dollar dominance may well be Washington itself, witnesses said in testimony on Thursday before a key advisory committee to the US Congress. Economic sanctions and access to US-led global banking systems are a powerful US tool that can be used to great effect, said experts before the US-China... https://www.scmp.com/news/us/economy-trade-business/article/3350382/why-biggest-threat-us-global-dollar-dominance-may-well-be-washington-itself?utm_source=rss_feed https://www.scmp.com/news/us/economy-trade-business/article/3350382/why-biggest-threat-us-global-dollar-dominance-may-well-be-washington-itself?utm_source=rss_feed Thu, 16 Apr 2026 23:42:50 +0000 Julie Zhang Julie Zhang Hong Kong is putting gold at the centre of its push to become a global commodities trading hub, with officials prioritising plans for an international gold trading centre alongside a broader strategy to expand the city’s role in physical trade, derivatives and logistics. The government’s newly formed Commodity Strategy Committee held its first meeting on Monday under Financial Secretary Paul Chan Mo-po, as Hong Kong looked to build out a commodities ecosystem that would generate new growth... https://www.scmp.com/business/banking-finance/article/3337366/gold-takes-centre-stage-hong-kong-launches-committee-build-commodities-ecosystem?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3337366/gold-takes-centre-stage-hong-kong-launches-committee-build-commodities-ecosystem?utm_source=rss_feed Mon, 22 Dec 2025 11:11:01 +0000 Kandy Wong Kandy Wong China is accelerating efforts to secure its copper supply chain, designating the metal as critical across strategic industries such as electric vehicles, artificial intelligence and defence amid rising geopolitical tensions. Provincial governments are leading the charge. On Monday, Jiangxi – already a hub for heavy rare earth mines – pledged in its 15th five-year plan to develop a world-leading hub for advanced copper-based new materials. That follows a similar move in Shandong, where provincial... https://www.scmp.com/economy/global-economy/article/3336765/china-bets-big-copper-weaponisation-risks-low-unlike-rare-earths-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3336765/china-bets-big-copper-weaponisation-risks-low-unlike-rare-earths-analysts?utm_source=rss_feed Wed, 17 Dec 2025 10:00:22 +0000 Kandy Wong Kandy Wong A key industrial hub in eastern China is launching a push to transform itself into one of the world’s top copper-smelting bases, aiming to forge stronger supply chains for the strategic metal as prices flirt with record highs. In an implementation plan released on Tuesday, the Shandong provincial government pledged to expand its copper industry, with the next two years seeing rapid advancements. The move comes as geopolitical tensions and the race for technological dominance shore up copper’s... https://www.scmp.com/economy/china-economy/article/3336261/chinas-copper-heartland-vows-build-us28-billion-empire-dominate-global-market?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3336261/chinas-copper-heartland-vows-build-us28-billion-empire-dominate-global-market?utm_source=rss_feed Sat, 13 Dec 2025 03:00:14 +0000 Cheryl Arcibal Cheryl Arcibal The demand for storage of commodities and art is providing a much-needed boost for Hong Kong’s logistics properties, where recovery has lagged behind other commercial real estate segments. New demand from the London Metal Exchange’s (LME) inclusion of Hong Kong in the exchange’s global warehousing network is helping the segment, where 11 licences have been issued to warehouse operators in the city. “New space is being taken from that angle and that’s around 30,000 sq ft to 100,000 sq ft per... https://www.scmp.com/business/article/3327911/hong-kongs-warehouse-sector-gets-support-robust-demand-storage-metals-and-art?utm_source=rss_feed https://www.scmp.com/business/article/3327911/hong-kongs-warehouse-sector-gets-support-robust-demand-storage-metals-and-art?utm_source=rss_feed Mon, 06 Oct 2025 01:30:14 +0000 Cao Li Cao Li Hong Kong has taken a significant step in developing a commodities ecosystem by joining the London Metal Exchange’s (LME) global network of storage and delivery, according to Financial Secretary Paul Chan Mo-po. At Tuesday’s launch of two of the eight warehouse facilities in the city certified by LME, Chan said the development was “of great significance for supporting [China’s] development strategy” and “enhancing Hong Kong’s status as an international financial and shipping... https://www.scmp.com/business/commodities/article/3322342/hong-kong-benefit-joining-london-metal-exchanges-warehouse-network-paul-chan?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3322342/hong-kong-benefit-joining-london-metal-exchanges-warehouse-network-paul-chan?utm_source=rss_feed Tue, 19 Aug 2025 07:00:15 +0000 Xinyi Wu Xinyi Wu US President Donald Trump signed an executive order imposing a 50 per cent tariff on certain copper imports – notably excluding refined copper – on Wednesday, sending US copper prices tumbling by around 20 per cent to US$4.44 a pound as of Thursday afternoon. The move clarified the scope of Trump’s initial announcement in early July, which had led US futures prices to rally to a record high of nearly US$6 and prompted traders to accelerate shipments in anticipation of widespread duties. In this... https://www.scmp.com/economy/global-economy/article/3320285/trumps-cooper-tariff-tumult-sees-prices-fall-scope-impact-defies-expectations?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3320285/trumps-cooper-tariff-tumult-sees-prices-fall-scope-impact-defies-expectations?utm_source=rss_feed Thu, 31 Jul 2025 12:30:13 +0000 Ralph Jennings Ralph Jennings Aaron Forkash, a scrap metal dealer based in California, plans to continue exporting copper to Asia even after US President Donald Trump’s new 50 per cent tariff on the metal comes into force on August 1. The Trump administration has said the import duty will help revive the US copper industry by making it more profitable to produce the metal at home. But the truth is that it is actually cheaper and easier for American scrap dealers to ship copper to China and other Asian economies than to... https://www.scmp.com/economy/china-economy/article/3319594/trumps-copper-tariffs-fail-stop-us-metal-being-shipped-china?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3319594/trumps-copper-tariffs-fail-stop-us-metal-being-shipped-china?utm_source=rss_feed Fri, 25 Jul 2025 13:30:09 +0000 Xinyi Wu Xinyi Wu Shockwaves from Washington’s decision to impose a 50 per cent tariff on copper imports are still rippling across the Pacific, and China, the world’s largest consumer of the metal, is feeling the effects. Copper futures traded in the US rallied on the tariff threat, expanding a price gap with the London and China markets, where prices fell. The most active copper futures contracts traded on the Shanghai Futures Exchange fell by 1.36 per cent on Wednesday following US President Donald Trump’s... https://www.scmp.com/economy/global-economy/article/3317571/surprise-us-copper-tariff-tests-mettle-chinas-vast-refining-industry?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3317571/surprise-us-copper-tariff-tests-mettle-chinas-vast-refining-industry?utm_source=rss_feed Wed, 09 Jul 2025 11:00:13 +0000 Eric Ng Eric Ng Zijin Mining, one of China’s largest miners of gold and copper, struck a deal to buy a project in Kazakhstan for US$1.2 billion ahead of a planned listing of its international unit on Hong Kong’s stock exchange. In a statement to the Hong Kong bourse on Monday, the company said the deal would increase its gold reserves and output and help it become one of the world’s top three producers by 2028, up from sixth last year. The deal would also “significantly enhance the asset scale, profit level and... https://www.scmp.com/business/article/3316335/zijin-buys-us12-billion-kazakhstan-gold-mine-ahead-overseas-units-hong-kong-listing?utm_source=rss_feed https://www.scmp.com/business/article/3316335/zijin-buys-us12-billion-kazakhstan-gold-mine-ahead-overseas-units-hong-kong-listing?utm_source=rss_feed Mon, 30 Jun 2025 05:21:44 +0000 Cao Li Cao Li Hong Kong will table a bill by the end of the year to offer a 50 per cent tax concession for certain commodity trading activities, Financial Secretary Paul Chan Mo-po said on Wednesday. The legislation was part of a broader policy initiative to develop a commodity trading ecosystem in the city, Chan said at the LME Asia Metals Seminar. In February, he said the bill would be brought to the Legislative Council in the first half of 2026. Chan’s remarks came a day after the London Metal Exchange... https://www.scmp.com/business/article/3311189/hong-kong-plans-legislation-offer-50-tax-concession-some-commodity-trading?utm_source=rss_feed https://www.scmp.com/business/article/3311189/hong-kong-plans-legislation-offer-50-tax-concession-some-commodity-trading?utm_source=rss_feed Wed, 21 May 2025 07:00:08 +0000 Bloomberg Bloomberg The Shanghai Gold Exchange plans to expand its warehouse network to Hong Kong, helping to raise the profile of its yuan-denominated products, including for the precious metal, beyond mainland China. The new vault will be operated by a subsidiary of Bank of China, according to people familiar with the matter, who requested not to be identified as the information is private. The timeline for the move is not yet clear, they added. At present, there are two such warehouses in Shanghai, plus a third... https://www.scmp.com/business/commodities/article/3309265/shanghai-gold-exchange-eyes-hong-kong-vault-promote-yuan-denominated-products?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3309265/shanghai-gold-exchange-eyes-hong-kong-vault-promote-yuan-denominated-products?utm_source=rss_feed Tue, 06 May 2025 09:05:11 +0000 Peggy Sito Peggy Sito The approval of the first four official London Metal Exchange (LME) warehouses in Hong Kong gives a long-awaited boost to the city’s ambition of playing a more integral role in global metals trading. Many industry leaders, including Tiger Shi, CEO of Bands Financial, and Clara Chan, CEO of Hong Kong-listed Lee Kee Group, believe the development marks a pivotal step in strengthening the city’s position as a strategic commodities hub in Asia. The establishment of the LME warehouses in the city... https://www.scmp.com/business/banking-finance/article/3307956/why-london-metal-exchanges-hong-kong-warehouses-matter-citys-financial-status?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3307956/why-london-metal-exchanges-hong-kong-warehouses-matter-citys-financial-status?utm_source=rss_feed Mon, 28 Apr 2025 00:30:11 +0000 Cao Li Cao Li The London Metal Exchange (LME) has approved four warehouse facilities in Hong Kong, extending its global network to the doorstep of mainland China, the world’s largest consumer of metals. The new facilities would be able to begin storing seven of the 14 LME-approved metals within three months, the exchange said in a statement on Tuesday. “Hong Kong is now well-positioned to further develop as a key global metals hub servicing the region and as a gateway for access to the mainland China market,... https://www.scmp.com/business/commodities/article/3306643/hong-kong-warehouses-get-lme-approval-exchange-eyes-china-metal-trade?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3306643/hong-kong-warehouses-get-lme-approval-exchange-eyes-china-metal-trade?utm_source=rss_feed Tue, 15 Apr 2025 11:32:38 +0000 Aileen Chuang Aileen Chuang A Hong Kong commodities market focused on materials critical to clean energy and other emerging industries would elevate the city’s importance in global trade while providing a strategic alternative for economies and companies worldwide, according to a local private think tank. Such a market would help commodities buyers avoid having all their eggs in one basket in Western markets, the Better Hong Kong Foundation said in a report on Wednesday. “Developing the commodity market is an important... https://www.scmp.com/business/commodities/article/3294826/hong-kong-should-seize-role-clean-energy-commodities-think-tank-says?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3294826/hong-kong-should-seize-role-clean-energy-commodities-think-tank-says?utm_source=rss_feed Wed, 15 Jan 2025 07:30:09 +0000 Cao Li Cao Li Hong Kong is spearheading efforts to strengthen regional market collaboration, connecting global investors with opportunities in mainland China, Southeast Asia and the Middle East, according to the chief operating officer of the city’s bourse operator. “For the Hong Kong exchange and also importantly for Hong Kong, that regional collaboration needs to continue,” Vanessa Lau of Hong Kong Exchanges and Clearing (HKEX) said at the Asian Financial Forum in Hong Kong on Tuesday. “We need to be more... https://www.scmp.com/business/markets/article/3294693/hong-kong-bridges-china-asean-middle-east-market-ties-grow-hkex-official?utm_source=rss_feed https://www.scmp.com/business/markets/article/3294693/hong-kong-bridges-china-asean-middle-east-market-ties-grow-hkex-official?utm_source=rss_feed Tue, 14 Jan 2025 08:30:36 +0000 Enoch Yiu Enoch Yiu British financial firm Marex Group has big plans for expansion in Hong Kong in coming years, as it believes the city has the potential to be a commodity hub in Asia, according to a senior executive. The London-headquartered firm, which conducts trading and clearing for global clients to trade energy, commodities and financial products in 60 exchanges worldwide, has just moved to a bigger office in Hong Kong earlier this month, said Asia-Pacific CEO Arthur Fan. “Hong Kong has the conditions to be... https://www.scmp.com/business/commodities/article/3290712/hong-kongs-potential-commodities-hub-draws-expansion-uks-marex-group?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3290712/hong-kongs-potential-commodities-hub-draws-expansion-uks-marex-group?utm_source=rss_feed Sun, 15 Dec 2024 23:30:15 +0000 With new security laws in place, the third policy address from Chief Executive John Lee Ka-chiu focused on economic reform. He set out an array of measures to consolidate Hong Kong’s status as an international financial hub. They reflected both rivalry and long-term strategy. An example is the goal of building an international gold and commodities trading market. Hong Kong has lost much of its historical glitter as a gold trading market to Singapore. Lee is determined to restore it, quickly. He... https://www.scmp.com/opinion/comment/article/3282813/speed-essence-hong-kong-push-be-gold-commodities-hub?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3282813/speed-essence-hong-kong-push-be-gold-commodities-hub?utm_source=rss_feed Fri, 18 Oct 2024 00:15:07 +0000 The London Metal Exchange has a clever plan for Hong Kong, and its owner Hong Kong Exchanges and Clearing likes the idea very much. The plan is to authorise a new warehouse in the city to add to the LME’s global storage network to facilitate the physical exchange of metals such as aluminium and zinc between mainland China and the rest of the world. Considering the mainland has been the world’s single largest importer of raw commodities, upon which most of LME contracts depend, one has to wonder... https://www.scmp.com/opinion/article/3269515/lme-should-strike-while-iron-hot?utm_source=rss_feed https://www.scmp.com/opinion/article/3269515/lme-should-strike-while-iron-hot?utm_source=rss_feed Sun, 07 Jul 2024 22:45:12 +0000 Enoch Yiu Enoch Yiu The London Metal Exchange (LME) is exploring the idea of adding a warehouse in Hong Kong to its global network to meet rising demand for the physical exchange of metals such as aluminium and zinc between mainland China and the rest of the world, according to its CEO Matthew Chamberlain. “The fantastic connectivity that we have here in Hong Kong to the mainland is really exciting, and that is why I am really enthusiastic about the concept of Hong Kong as a warehousing location,” Chamberlain said... https://www.scmp.com/business/china-business/article/3268236/lme-mulls-warehouse-hong-kong-tap-chinas-growing-metals-trade-global-investors?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3268236/lme-mulls-warehouse-hong-kong-tap-chinas-growing-metals-trade-global-investors?utm_source=rss_feed Thu, 27 Jun 2024 05:49:51 +0000 Sanctions by the United States and the United Kingdom on Russian metals will cement China as Moscow’s buyer of last resort for key commodities, and enhance Shanghai’s role as a venue to set prices for materials crucial to the global economy. The London Metal Exchange’s ban on newly produced Russian aluminium, copper and nickel is likely to drive Chinese imports even higher. It also leaves the Shanghai Futures Exchange as the only major commodities bourse in the world to accept Russian shipments... https://www.scmp.com/business/commodities/article/3259017/shanghai-sole-commodities-bourse-stay-open-russian-aluminium-copper-and-nickel-sanctions-drive?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3259017/shanghai-sole-commodities-bourse-stay-open-russian-aluminium-copper-and-nickel-sanctions-drive?utm_source=rss_feed Mon, 15 Apr 2024 05:27:36 +0000 Fortescue’s months-long stock rally suffered a big pullback in February as investors turned sour on the iron ore producer’s earnings growth and exposure to slumping metal prices amid China’s rocky economic recovery. The world’s fourth-largest iron ore miner is tipped for the greatest earnings slowdown over the next year compared with peers BHP, Rio Tinto and Vale, according to data compiled by Bloomberg. Shares of the Australian firm have surged almost 30 per cent in the past six months,... https://www.scmp.com/business/china-business/article/3254032/china-slump-turns-fortescue-world-beating-mining-stock-big-loser?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3254032/china-slump-turns-fortescue-world-beating-mining-stock-big-loser?utm_source=rss_feed Mon, 04 Mar 2024 03:00:11 +0000 The London Metal Exchange (LME) is studying Hong Kong as a location to expand its global metal warehouse network, five sources with knowledge of the matter said, hopeful success there might open the door to mainland China, its ultimate target. Registering warehouses in China, the world’s largest consumer of industrial metals, to store metal traded on the LME has been a strategic aim since Hong Kong Exchanges and Clearing (HKEX) bought the LME in 2012 for US$2.2 billion. In a presentation made to... https://www.scmp.com/business/commodities/article/3250246/hkex-owned-london-metal-exchange-targets-hong-kong-option-warehouse-expansion-sources-say?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3250246/hkex-owned-london-metal-exchange-targets-hong-kong-option-warehouse-expansion-sources-say?utm_source=rss_feed Tue, 30 Jan 2024 04:17:22 +0000 The London Metal Exchange (LME) is planning to launch new metals contracts using prices from the Shanghai Futures Exchange (ShFE), three industry sources familiar with the matter said, further increasing China’s influence on global metals markets. Collaboration between the 146-year-old LME and ShFE was mentioned briefly by LME’s CEO Matthew Chamberlain in October at the annual LME Week dinner, without any detail. Two years ago the idea of China allowing an overseas exchange to use domestic... https://www.scmp.com/business/commodities/article/3245534/hkex-owned-lme-plans-new-metals-contracts-using-shanghai-futures-exchange-prices-sources?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3245534/hkex-owned-lme-plans-new-metals-contracts-using-shanghai-futures-exchange-prices-sources?utm_source=rss_feed Tue, 19 Dec 2023 02:02:53 +0000 The London Metal Exchange and its parent, Hong Kong Exchanges and Clearing (HKEX), are ready to move forward and reboot investor confidence after winning a legal battle against American financial firms over cancelled nickel trades last year. “It is now time to look forward to the incredible opportunities ahead and the key role that the LME will continue to play in the pricing of the metal that will shape the industries and technologies of tomorrow,” said Nicolas Aguzin, the chief executive... https://www.scmp.com/business/commodities/article/3243346/hkex-and-lme-look-tap-incredible-opportunities-restore-confidence-after-winning-legal-battle-over?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3243346/hkex-and-lme-look-tap-incredible-opportunities-restore-confidence-after-winning-legal-battle-over?utm_source=rss_feed Thu, 30 Nov 2023 07:35:28 +0000 Copper prices rose to their highest in nearly two months on Monday, buoyed by growing hopes of fresh stimulus and demand in China, a softer dollar and protests at a mine in Panama. Benchmark copper on the London Metal Exchange (LME) was up 0.9 per cent at US$8,344 a metric ton in official rings, having earlier touched US$8,355 for its highest since September 29. Hopes for stronger copper consumption were raised by a pledge from China’s central bank to ensure financing support for the property... https://www.scmp.com/news/china/article/3242237/china-demand-hopes-drive-copper-prices-two-month-peak?utm_source=rss_feed https://www.scmp.com/news/china/article/3242237/china-demand-hopes-drive-copper-prices-two-month-peak?utm_source=rss_feed Mon, 20 Nov 2023 18:39:39 +0000 From a gong ceremony to an actual Hong Kong taxi cruising the streets of London, Hong Kong Exchanges and Clearing (HKEX) sought to announce its presence as it opened the doors of its newest international office in Britain’s financial capital on Wednesday. The operator of the Hong Kong stock exchange is hoping the London office, alongside an office it opened in New York in June, will allow it to better connect with international investors and pitch Hong Kong as a global fundraising hub. “Our new... https://www.scmp.com/business/banking-finance/article/3233664/hkex-opens-london-office-31-degree-weather-and-hong-kong-taxi-tow?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3233664/hkex-opens-london-office-31-degree-weather-and-hong-kong-taxi-tow?utm_source=rss_feed Thu, 07 Sep 2023 01:32:58 +0000 When London Metal Exchange (LME) CEO Matthew Chamberlain went to bed on March 7 of last year, he believed the nickel market was still acting orderly despite a frenetic period of trading that had seen the price of the nickel rise as much as 65 per cent over the course of the day. But, by the time he arose at 5.30am London time the next morning and briefly scanned his mobile telephone, Chamberlain said in court documents that he was alarmed by “extreme price movements in nickel” at a level he had... https://www.scmp.com/business/banking-finance/article/3226885/lmes-nickel-crisis-decision-heart-dispute-uk-judicial-review-involving-us12-billion-cancelled-trades?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3226885/lmes-nickel-crisis-decision-heart-dispute-uk-judicial-review-involving-us12-billion-cancelled-trades?utm_source=rss_feed Fri, 07 Jul 2023 22:30:10 +0000 The London Metal Exchange (LME) faced a “death spiral” in nickel and its other metals markets with as many as a dozen of its members at risk of default if it failed to step in and stabilise the nickel market during a period of chaos last year, a lawyer for the bourse told a London court on Thursday. US hedge fund Elliott Associates and Jane Street Global Trading, which describes itself as a market maker, have sued the Hong Kong Exchanges and Clearing (HKEX)-owned bourse in London’s high court... https://www.scmp.com/business/banking-finance/article/3225057/lme-faced-death-spiral-many-dozen-firms-risk-default-amid-nickel-chaos-lawyer?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3225057/lme-faced-death-spiral-many-dozen-firms-risk-default-amid-nickel-chaos-lawyer?utm_source=rss_feed Thu, 22 Jun 2023 22:00:09 +0000 The London Metal Exchange (LME) had no senior staff on duty monitoring trading in the early morning hours as nickel prices spiked last year before it decided to cancel billions of dollars of trades, a lawyer for one of two firms suing the bourse has argued. US hedge fund Elliott Associates and Jane Street Global Trading, which describes itself as a market maker, have sued the Hong Kong Exchanges and Clearing (HKEX)-owned bourse in London’s high court, claiming the exchange made an “irrational”... https://www.scmp.com/business/banking-finance/article/3224932/lme-lacked-senior-staff-monitoring-trading-nickel-prices-spiked-jane-street?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3224932/lme-lacked-senior-staff-monitoring-trading-nickel-prices-spiked-jane-street?utm_source=rss_feed Wed, 21 Jun 2023 22:00:25 +0000 The London Metal Exchange (LME) made a “wholly unprecedented decision” to cancel nickel trades in March 2022 when it had other less extreme options at hand after a surge in nickel prices forced it to suspend trading last year, according to two funds suing the bourse in London. Among its options, the Hong Kong Exchanges and Clearing (HKEX)-owned bourse could have set the margin price at the closing nickel price on March 7, the day before it suspended trading, according to Elliott Associates and... https://www.scmp.com/business/banking-finance/article/3224793/lme-had-options-avoid-cancelling-trades-during-last-years-nickel-crisis-funds-say?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3224793/lme-had-options-avoid-cancelling-trades-during-last-years-nickel-crisis-funds-say?utm_source=rss_feed Tue, 20 Jun 2023 22:00:18 +0000 The London Metal Exchange (LME) is preparing to defend itself in court on Tuesday, more than a year after it was forced to suspend nickel trading following a short squeeze that threatened to destabilise the global market in March 2022. US hedge fund Elliott Associates and quantitative investing firm Jane Street Global Trading have sued the 146-year-old bourse in London, saying its actions to stem the chaos favoured some clients over others and violated their rights under the European Convention... https://www.scmp.com/business/banking-finance/article/3224512/lme-set-defend-itself-3-day-trial-london-over-nickel-chaos-last-years-trading-freeze?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3224512/lme-set-defend-itself-3-day-trial-london-over-nickel-chaos-last-years-trading-freeze?utm_source=rss_feed Sun, 18 Jun 2023 22:30:13 +0000 The CEO of London Metal Exchange (LME) said the 146-year-old metal trading bourse is making incremental progress in reviving investors’ confidence after last year’s chaos, hoping to gain a stronger presence in Asia. “I don’t think restoring confidence is something that just happens overnight,” Matthew Chamberlain told the Post on the sidelines of the LME Asia Metals Seminar in Hong Kong on Tuesday. “Every day you have to show you’re doing something to earn that trust, and people have to see the... https://www.scmp.com/business/china-business/article/3220769/lme-making-incremental-progress-reviving-investor-confidence-after-last-years-nickel-fiasco-ceo?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3220769/lme-making-incremental-progress-reviving-investor-confidence-after-last-years-nickel-fiasco-ceo?utm_source=rss_feed Tue, 16 May 2023 22:00:20 +0000 Qianhai Mercantile Exchange (QME), a Chinese commodities trading platform, is working with its sister company, the London Metal Exchange, to launch battery metal contracts. The bourse, owned by Hong Kong Exchanges and Clearing (HKEX), was studying the possibility of offering investors the chance to buy and sell spot contracts of lithium carbonate, nickel sulphate and cobalt, said Dong Feng, general manager of the QME. Cobalt, lithium and nickel are the three critical metals used to make... https://www.scmp.com/business/commodities/article/3220757/lme-works-chinese-commodities-exchange-launch-ev-battery-metal-contracts-demand-prices-surge?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3220757/lme-works-chinese-commodities-exchange-launch-ev-battery-metal-contracts-demand-prices-surge?utm_source=rss_feed Tue, 16 May 2023 10:29:45 +0000 The London Metal Exchange (LME) has unveiled its long-awaited “action plan” to improve its markets a year after a short squeeze threatened to destabilise the global nickel market, saying it would overhaul its margin requirements and introduce a new nickel contract focused on the Asian markets to improve liquidity. As part of a two-year overhaul, the Hong Kong Exchanges and Clearing (HKEX)-owned bourse also said it would seek to further enhance its monitoring of liquidity and over-the-counter... https://www.scmp.com/business/banking-finance/article/3215468/lme-overhaul-margins-introduce-new-nickel-contract-market-revamp?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3215468/lme-overhaul-margins-introduce-new-nickel-contract-market-revamp?utm_source=rss_feed Thu, 30 Mar 2023 15:52:52 +0000 The revelation that about US$2 million of “nickel” on the London Metal Exchange (LME) was actually just bags of stones has thrown a spotlight on the sprawling web of warehouses and metal stashes underpinning the billions of dollars of derivatives traded daily on the LME. Over the past week, warehouse staff from Busan in South Korea to Genoa in Italy have rushed to check tens of thousands of two-ton bags of nickel – in some cases, by literally kicking them. The LME advised warehouse operators to... https://www.scmp.com/business/commodities/article/3214843/london-metal-exchange-hunt-clues-jpmorgans-mystery-nickel-rocks-begin-kick?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3214843/london-metal-exchange-hunt-clues-jpmorgans-mystery-nickel-rocks-begin-kick?utm_source=rss_feed Sat, 25 Mar 2023 09:27:56 +0000 This is the second part of a two-part series looking at upcoming changes at Hong Kong Exchanges and Clearing Limited, which operates the Hong Kong bourse and owns the London Metal Exchange. The fallout from the chaos in nickel trading last March has hurt volumes at the 146-year-old commodities bourse, spawned lawsuits and emboldened potential competitors. Part one is here. The London Metal Exchange (LME) is still struggling to regain its reputation and standing as the predominant market for... https://www.scmp.com/business/banking-finance/article/3213837/london-metal-exchange-owned-hkex-seeks-rebuild-reputation-dominance-year-after-nickel-chaos?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3213837/london-metal-exchange-owned-hkex-seeks-rebuild-reputation-dominance-year-after-nickel-chaos?utm_source=rss_feed Sat, 18 Mar 2023 02:00:18 +0000 Britain’s financial regulator has opened an enforcement investigation into the London Metal Exchange’s (LME) handling of a chaotic period in the nickel market last year that led to a temporary trading suspension and prompted a series of lawsuits from investors. The Financial Conduct Authority (FCA) said it had reviewed the events that forced the Hong Kong Exchanges and Clearing (HKEX)-owned bourse to halt trading in nickel and cancel thousands of trades in the early hours of March 8, 2022, and... https://www.scmp.com/business/banking-finance/article/3212297/hkex-owned-lmes-handling-2022-nickel-chaos-faces-scrutiny-british-financial-watchdog-opens?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3212297/hkex-owned-lmes-handling-2022-nickel-chaos-faces-scrutiny-british-financial-watchdog-opens?utm_source=rss_feed Fri, 03 Mar 2023 13:00:17 +0000 Hong Kong Exchanges and Clearing (HKEX), which operates the third largest stock market in Asia, will open an office in London in the first half of this year to promote international listings and attract more overseas investors. The news confirms a report by the South China Morning Post in June last year that the bourse planned to open offices in London and New York. HKEX opened its New York office in December, which joined existing offices in Singapore, Beijing and Shanghai. The expansion to New... https://www.scmp.com/business/banking-finance/article/3212123/hkex-readies-london-office-opening-bid-secure-more-international-listings-and-overseas-traders?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3212123/hkex-readies-london-office-opening-bid-secure-more-international-listings-and-overseas-traders?utm_source=rss_feed Thu, 02 Mar 2023 11:47:25 +0000 An independent review has recommended the London Metal Exchange (LME) tighten its rules to improve its ability to identify and prevent future market distortions similar to those that triggered a chaotic period in the nickel market last year and prompted lawsuits from investors. The Hong Kong Exchanges and Clearing (HKEX)-owned bourse said it was “committed to taking all the necessary steps” to rebuild public confidence in its metals market, and would unveil an implementation plan in response to... https://www.scmp.com/business/banking-finance/article/3206324/hkex-owned-london-metal-exchange-should-tighten-rules-prevent-further-market-distortions-oliver?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3206324/hkex-owned-london-metal-exchange-should-tighten-rules-prevent-further-market-distortions-oliver?utm_source=rss_feed Tue, 10 Jan 2023 15:00:28 +0000 Copper, a darling of the global economic recovery from the pandemic, tumbled to its lowest level in 20 months as fears of a worldwide recession continued to mount, damping the outlook for demand of the metal used in everything from automobiles to homes to iPhones. The red metal dropped below US$7,000 a ton for the first time since November 2020, capping a 35 per cent decline from the all-time high it touched just four months ago when investors worried Russia’s invasion of Ukraine would further... https://www.scmp.com/business/commodities/article/3185407/copper-sell-deepens-amid-mounting-concerns-worldwide-recession?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3185407/copper-sell-deepens-amid-mounting-concerns-worldwide-recession?utm_source=rss_feed Fri, 15 Jul 2022 07:41:32 +0000 The London Metal Exchange (LME) is being sued for a second time in less than a week, as legal challenges mount over its decision to suspend and cancel nickel futures trades in March. Jane Street Global Trading, a quantitative trading firm, filed a judicial review against LME on Monday and is seeking US$15.3 million from the exchange. Both LME and its clearing house have been named as defendants. Jane Street Global’s suit follows a US$456 million lawsuit filed by affiliates of American hedge fund... https://www.scmp.com/business/banking-finance/article/3180685/lme-court-again-faces-us153-million-suit-trading-firm-jane?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3180685/lme-court-again-faces-us153-million-suit-trading-firm-jane?utm_source=rss_feed Tue, 07 Jun 2022 04:31:44 +0000 The London Metal Exchange (LME) has been sued in the British courts by affiliates of American hedge fund Elliott Management over its controversial decision in early March to suspend trading of nickel futures contracts and cancel trades in the metal amid a short squeeze on the century-old bourse. Elliott International and Elliott Associates have filed a judicial review claim in England’s High Court of Justice against LME for US$456 million, claiming that the trading suspension and trades... https://www.scmp.com/business/banking-finance/article/3180528/lme-faces-elliott-internationals-us456-million-law-suit?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3180528/lme-faces-elliott-internationals-us456-million-law-suit?utm_source=rss_feed Mon, 06 Jun 2022 01:58:53 +0000 The London Metal Exchange (LME) has proposed a new requirement that its members report their off-exchange positions in some metals, as it seeks to rebuild its reputation following a turbulent period in nickel trading earlier this year. The Hong Kong Exchanges and Clearing (HKEX)-owned bourse has asked for feedback on a plan to require its members to report their over-the-counter (OTC) positions on a weekly basis for metals contracts that require the metal to be physically delivered when a... https://www.scmp.com/business/banking-finance/article/3177710/lme-seeks-require-otc-position-reporting-it-rebuilds-its?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3177710/lme-seeks-require-otc-position-reporting-it-rebuilds-its?utm_source=rss_feed Fri, 13 May 2022 13:00:27 +0000 The London Metal Exchange (LME) is hobbling back to normalcy more than three weeks after an unprecedented suspension disrupted the trading of nickel contracts, rising questions about the viability of the century-old market place. Owned by Hong Kong’s stock exchange operator since 2012, the LME was raked over the coals for its March 8 decision to cancel transactions after it halted nickel trading. A 250-per cent price surge in just over 24 hours imperilled dozens of short sellers, the biggest... https://www.scmp.com/business/banking-finance/article/3172753/lmes-nickel-rout-worlds-metals-trading-hub-grapples-its?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3172753/lmes-nickel-rout-worlds-metals-trading-hub-grapples-its?utm_source=rss_feed Sat, 02 Apr 2022 03:30:16 +0000 Shares of Hong Kong and Moscow-listed aluminium producer Rusal fell by as much as 9 per cent on Monday morning after Australia slapped an immediate ban on the export of key materials bauxite and alumina to Russia. The ban – part of sanctions against Moscow for its invasion of Ukraine – on shipments of bauxite ore and intermediate product alumina was imposed on Sunday. Given that Russia relies on Australia for about 20 per cent of its alumina needs, the ban will limit Russia’s capacity to produce... https://www.scmp.com/business/article/3171224/ukraine-conflict-hong-kong-listed-aluminium-giant-rusals-shares-plunge?utm_source=rss_feed https://www.scmp.com/business/article/3171224/ukraine-conflict-hong-kong-listed-aluminium-giant-rusals-shares-plunge?utm_source=rss_feed Mon, 21 Mar 2022 05:00:27 +0000 A wave of price hikes is sweeping China’s electric vehicle (EV) market, and is expected to dent their sales in the world’s largest automobiles market. The sky-high prices of nickel and lithium, key materials used to make EV batteries, have forced carmakers ranging from global leader Tesla to Anhui province-based Chery Automobile to raise prices and pass on the higher costs to buyers. Concerns about supply-chain disruptions has roiled global commodity prices over the past month as Russia invaded... https://www.scmp.com/business/china-business/article/3170850/ev-firms-raise-prices-china-nickel-lithium-skyrocket-could?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3170850/ev-firms-raise-prices-china-nickel-lithium-skyrocket-could?utm_source=rss_feed Thu, 17 Mar 2022 16:30:26 +0000 The London Metal Exchange (LME) temporarily suspended electronic trading of nickel just minutes into its session early on Wednesday, a week after a surge in prices spurred billions of dollars in margin calls and forced the Hong Kong Exchanges & Clearing (HKEX)-owned bourse to suspend trading of the commodity for the second time in its history. The 145-year-old bourse reopened for electronic trading after 2pm GMT, but only saw limited trades in another chaotic day in the nickel market. The LME... https://www.scmp.com/business/banking-finance/article/3170707/lme-nickel-mayhem-londons-trading-stops-soon-it-begins-new?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3170707/lme-nickel-mayhem-londons-trading-stops-soon-it-begins-new?utm_source=rss_feed Wed, 16 Mar 2022 11:50:34 +0000 The London Metal Exchange (LME) will resume trading nickel on Wednesday after its controversial weeklong halt, confident that funding lined up by the largest short-seller of the metal can avert the catastrophic price surge that threw the bourse into chaos. Transactions will resume at 8am London time on Wednesday, as a major market client had gained the support of banks that might mitigate further “disorderly conditions,” said the LME, a unit of Hong Kong Exchanges and Clearing Limited (HKEX)... https://www.scmp.com/business/banking-finance/article/3170570/lme-resume-nickel-trading-after-chinese-short-seller?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3170570/lme-resume-nickel-trading-after-chinese-short-seller?utm_source=rss_feed Tue, 15 Mar 2022 11:52:34 +0000 Tesla raised the price of its Model 3 and Model Y electric vehicles (EVs) in China and the US, passing on the higher cost of lithium-ion batteries as nickel prices soar in global markets. The US carmaker announced on Thursday that the Shanghai-made Performance edition of its Model 3 would be priced at 349,900 yuan (US$55,359), an increase of 10,000 yuan. The price of the Model 3 basic edition remains unchanged. Its Model Y long-range and Performance versions both saw a price increase of 10,000... https://www.scmp.com/business/china-business/article/3169942/tesla-raises-price-model-3-model-y-electric-vehicles-surge?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3169942/tesla-raises-price-model-3-model-y-electric-vehicles-surge?utm_source=rss_feed Thu, 10 Mar 2022 10:30:15 +0000