CME Group Approves First Aluminum Storage Sites in Taiwan
CME Group approved its first aluminum storage sites in Taiwan with a 95,000-ton capacity. This expansion aims to boost its contract presence in Asian markets.
The United States-based commodities exchange operator CME Group Inc. has approved its first aluminum storage facilities in Taiwan as part of a strategic effort to expand its presence in Asia. The decision comes after the exchange received multiple applications for new warehousing in the region, which stands as the largest market for the metal globally. According to two separate notices released late Thursday, the exchange has authorized two applications from warehousing firm C. Steinweg and one from Pacorini Global Services. These facilities are located in the southern Taiwanese port city of Kaohsiung and will store aluminum deliverable against the Comex aluminum futures contract. This move is part of a broader initiative to increase the traction of the aluminum contract in Asia, where the London Metal Exchange already maintains a warehousing presence in both Taiwan and Hong Kong. The total approved outdoor storage capacity for aluminum at the Taiwanese sites is 95,000 metric tons. This capacity is divided among the two C. Steinweg locations, which account for 50,000 and 20,000 tons respectively, and the Pacorini facility, which provides 25,000 tons. The expansion into Kaohsiung follows reports that the exchange is also looking to establish new base metals warehousing in other regional hubs to better compete in the Asian market.
