CME Group is set to broaden the list of locations where aluminium can be delivered against its Comex futures contracts by adding sites in Taiwan and Hong Kong, three people with direct knowledge of the matter said. The potential additions would mark a notable expansion of the U.S. exchange's physical delivery network across a region that produced around two-thirds of the world’s aluminium last year.
Currently, CME’s approved Asian warehouse network for base metals is limited to facilities in Malaysia, Singapore and South Korea. New filings disclosed on the exchange's notices page show that C. Steinweg and Pacorini Global Services have applied to permit delivery into storage in Kaohsiung, Taiwan's main port. The filings indicate those warehouses could accept metal deliverable versus Comex aluminium futures.
Representatives of Steinweg and Pacorini already operate warehouses used by the London Metal Exchange in Kaohsiung. Those facilities account for just under 10% of LME aluminium inventories relative to the LME’s total aluminium holdings of 483,550 metric tons. CME, Steinweg and Pacorini declined to comment.
Two warehousing industry sources said the applications to list Kaohsiung followed direct discussions with CME. They added that officials from the exchange visited the island recently to inspect warehouses and to better understand local regulations. Those sources requested anonymity because the talks were private.
Unlike Comex copper, which in practice is delivered duty-paid into U.S. warehouses, Comex aluminium is arranged for delivery into bonded storage. One derivatives trading professional familiar with the issue said bonded storage makes Comex aluminium more attractive to users based outside the United States.
The list of Comex-approved aluminium brands in Asia already includes metal from Indonesia’s state-controlled miner Inalum, Malaysia’s Press Metal, a number of Indian smelters and ingots from Aluminum Corp of China Ltd, commonly referred to as Chalco.
Alongside the Taiwanese filings, two notices in late January show that UK-based warehousing firm Henry Bath and Singapore-headquartered GKE Metal Logistics have applied to list aluminium storage facilities in Hong Kong. GKE has also sought approval to store lead that could be deliverable against Comex contracts. Henry Bath declined to comment and GKE did not respond to a request for comment.
The prospect of Hong Kong as a Comex aluminium delivery hub comes after the LME approved more than a dozen warehouse facilities in the Chinese special administrative region since early last year. Those newly approved warehouses faced initial challenges in attracting metal due to constrained space and high rents. Still, LME copper stocks in Hong Kong recently rose above 10,000 tons after delivering to the LME became profitable for some Chinese producers. There is currently no aluminium stored in Hong Kong LME warehouses.
One of the industry sources interviewed said Hong Kong did not yet appear to make economic sense as an aluminium delivery point, while noting that flows of aluminium into Kaohsiung were significant. Observers also point to the overall paucity of metal in Comex inventories: global Comex aluminium stocks total just 3,834 tons, down roughly 80% since April 2025, with the bulk of physical metal located in Asia.
Comex launched its aluminium futures contract in 2019 but trading remained marginal for several years. Activity increased to represent 1.6% of global aluminium futures volumes in 2023, advanced to 1.9% in 2024 and then eased to 1.2% last year, based on exchange volume calculations. By contrast, the LME’s aluminium futures accounted for 80.6% of total futures trading in the metal last year, with the Shanghai Futures Exchange representing 18.2%.
Summary
CME is moving to add Taiwan and Hong Kong as Comex aluminium delivery locations after applications from established warehousing firms. The planned expansion would broaden CME's Asian footprint beyond Malaysia, Singapore and South Korea at a time when most global aluminium production is concentrated in the region and Comex stocks are very low.
- Key points
- CME has received applications to list warehouses in Kaohsiung and Hong Kong from established operators including C. Steinweg, Pacorini, Henry Bath and GKE Metal Logistics.
- Comex aluminium is delivered into bonded storage, which can be more appealing to non-U.S. market participants than duty-paid delivery arrangements.
- The move could affect metals trading, logistics and storage sectors, and is occurring against a backdrop of very low Comex aluminium stocks and dominant trading shares held by the LME and Shanghai Futures Exchange.
- Risks and uncertainties
- It is unclear whether Hong Kong will draw aluminium inventory given current economics - industry sources say Hong Kong may not make sense for aluminium right now, affecting warehousing and logistics demand in the SAR.
- Comex’s extremely low global stocks - roughly 3,834 tons - raise questions about the immediate availability of deliverable metal and could influence short-term market dynamics for traders and physical traders.
- Applications and private talks with CME are ongoing and subject to regulatory review and operational inspections, so warehouse approvals are not guaranteed.