IN Brief:
- Shanghai International Port Group is reportedly negotiating to acquire H&M Metal Warehousing, although no agreement or purchase price has been announced.
- H&M has operated within the London Metal Exchange's approved warehouse network since 2010, holding eligible industrial metals under the exchange's warranting system.
- The negotiations could extend SIPG's activities from container port operations into exchange-linked metals storage, with access to information about metal movements reportedly among its interests.
Shanghai International Port Group is reportedly negotiating to acquire Singapore-based H&M Metal Warehousing, potentially extending the Chinese state-backed port operator’s activities into the storage and physical delivery infrastructure used by international industrial metals markets.
Two people familiar with the discussions told Reuters on 12 October 2026 that negotiations were continuing with Chinese government approval, although they cautioned that the proposed transaction might not result in an agreement. Neither company responded to requests for comment, and no purchase price, binding contract or completion timetable has been disclosed.
Shanghai International Port Group, known as SIPG, is controlled by the Shanghai municipal government and operates the world’s busiest container port. H&M is a privately owned Singapore warehousing company that received London Metal Exchange approval in 2010 and operates facilities in Asia for the storage of metal within the exchange’s warranting system.
The two businesses operate in different parts of the freight and commodities infrastructure. A container port handles the transfer of goods between vessels and inland transport, while an exchange-approved warehouse holds specified metal inventories that may be used to support physical delivery against exchange contracts. Both activities require controlled handling and reliable inventory records, but LME warehousing also involves specialised obligations concerning the identity and release of stored material.
The London Metal Exchange licenses warehouse companies and individual storage facilities to hold qualifying metal on behalf of warrant holders. It does not own the warehouses or the material inside them. Its network includes more than 450 approved storage facilities across locations in Europe, Asia and the United States, with separate procedures for approving delivery locations, warehouse operators and individual premises.
Metal entering an approved facility can be placed under an LME warrant when it meets the relevant quality and documentation requirements. A warrant represents an entitlement to a specific parcel of eligible metal, allowing that inventory to participate in the exchange’s physical delivery system. Ownership rights can change without requiring the metal itself to be physically transported between warehouses whenever a transaction occurs.
The distinction between a warrant transfer and a physical cargo movement influences warehouse operations. A parcel may remain in storage while its associated entitlement changes hands, whereas a customer seeking physical delivery must arrange the applicable release and collection procedures. Operators therefore maintain records of inventory, ownership documentation and movements into and out of their facilities, in addition to undertaking conventional storage and handling work.
Reuters reported that SIPG’s interest in H&M is partly associated with information generated by metals movements between companies and countries. Inventory and cargo movement records can provide insight into the location and circulation of industrial materials, although the commercial usefulness of such information depends on its completeness, timeliness and the restrictions governing its disclosure.
Ownership of a warehouse operator would not automatically confer unrestricted access to confidential customer information. The LME’s warehouse framework includes operational and confidentiality requirements, and the exchange’s 2026 physical markets reform programme addresses transparency and warehouse procedures. Any prospective owner would have to consider those obligations alongside the commercial arrangements governing customer records.
LME warehouse revenue is principally connected to storage and handling services. Warrant holders are responsible for applicable warehouse rent, while charges associated with releasing metal can depend on the facility and the material involved. The profitability of a particular operator consequently depends on the volume of stock held, how long it remains in storage, the rate of physical movements and the costs of operating the facilities.
Sources cited by Reuters characterised exchange warehousing as a comparatively low-margin business, suggesting that the reported interest in operational data may form part of SIPG’s commercial assessment. H&M’s financial results and the terms under discussion have not been made public, however, preventing a reliable valuation of the company or an assessment of the financial returns SIPG might expect.
China already has a presence in the exchange’s warehouse network through CMST, which owns a majority stake in Henry Bath. Reuters also reported that SIPG previously approached Italy-headquartered PGS Global Logistics, another LME-registered operator, without completing a transaction. Neither the existing investment nor the earlier approach establishes that H&M will be acquired.
Purchasing an established warehouse operator could provide access to existing premises, staff, customer relationships and approved operating arrangements. It would differ from establishing a new business and seeking the necessary approvals for its facilities. Reuters reported that a change of ownership involving a logistics group without existing LME approval would not normally require the acquired warehouse operations to repeat the entire original approval process.
Continuing compliance would nevertheless remain necessary. The exchange’s approval system requires warehouse companies to maintain appropriate operational arrangements, insurance, capital adequacy and the ability to meet its applicable standards. Approval of a warehouse business also does not mean that any additional premises automatically become authorised storage locations.
The negotiations follow changes to the LME’s physical market rules during 2026, including measures intended to improve operational transparency, efficiency and fair access to warehousing services. Some requirements are being introduced on different timetables, leaving operators responsible for maintaining compliance as the framework develops.
A completed transaction could therefore give SIPG an established position within the international industrial metals storage system, alongside its container port activities. The identities of the facilities included, the proposed ownership arrangements and the intended integration with SIPG’s operations remain undisclosed. Until the companies confirm a binding agreement, the development remains an acquisition under discussion rather than a completed expansion.
