The CME is set to expand its warehouse network into Asia for the storage of lead, it said on Tuesday November 1.
C Steinweg will be listed in Busan, Johor, Port Klang and Singapore while Henry Bath will be listed in Port Klang. The move extends the CME’s warehouse network already in place for delivery in US and Europe – at Antwerp, Bilbo and Rotterdam
There is a 30-day notice period for any questions for regulatory approval but the expansion has already been vetted internally.
“It gives us the infrastructure to really help us in the base metal space overall,” Young-Jin Chang, CME global head of metals product, said.
CME rolled out its lead contract in October 2015. It is priced in US dollars; each lot represents 25 tonnes of physical material.
The contract has been slow to gain traction but Chang said this is due predominantly to the physical nature of the market.
“We continue to engage with the industry but our focus has been aluminium and copper,” Chang said.
Still, the establishment of a warehouse network in China remains beyond the reach of the CME at present, as it does for the LME – Chinese authorities will not allow domestic locations in China to be authorised for listing to foreign exchanges.
(Editing by Mark Shaw)