Four industry sources said the LME is considering loosening rules to enhance
Hong Kong's role as a metal warehousing hub. Two sources said HKEx executives
have queried warehousing firms on what barriers must be removed to make Hong
Kong viable. In a March consultation the LME proposed allowing outdoor storage
of aluminium on a location-by-location basis; sources said the proposal chiefly
targets Hong Kong given limited indoor space. The LME briefly permitted outdoor
aluminium storage in the mid-1990s but withdrew the option over weather damage
and security concerns.
