Financial Secretary Paul Chan said on Tuesday that Hong Kong's inclusion in the global metal warehouse network under the London Metal Exchange (LME) marks a major step in transforming the SAR into a global commodity hub while strategically serving national demands.

He was speaking at an unveiling ceremony for a LME-approved metals delivery warehouse, operated by China Resources Logistics and GKE Metal Logistics, in Cheung Sha Wan, which began operations last month.

Chan noted that commodities, notably non-ferrous metals, account for half of global shipping volume and are critical for developing various future industries.

He added that with China being the world's leading consumer and producer of non-ferrous metals, establishing a metal delivery point here under the LME system not only helps build up a local commodity trading ecosystem but also serves the national development strategy.

"The tariff war initiated by the United States might have suppressed the prices of non-ferrous metals in the short term, but in the long run, global demand for related metals will gradually increase with the flourishing new energy and high-tech industries," Chan said.

"There will be huge opportunities in the market.

"Hong Kong, as the nation's southern gateway, boasts a world-class, convenient and efficient logistics network.

"Setting up a delivery point here... will greatly reduce both delivery times and costs, and improve distribution efficiency compared to using overseas warehouses."

Chan also noted that having LME-approved warehouses here will help promote the pricing and settlement of bulk commodities in yuan, thereby boosting the global usage and appeal of the currency.

Echoing Chan, Carlson Tong, chairman of the Hong Kong Exchanges and Clearing (HKEX), said more than 8,000 tonnes of certificated metals have been stored at all eight LME-approved warehouses in the SAR so far since operations commenced at the facilities last month.

He said Hong Kong, as a global financial centre and "super connector", has both the responsibility for and advantages in developing the trade in metals as more than 30 percent of the LME's trading volume is related to the mainland market.

"Setting up the LME-approved warehouses in Hong Kong will help more closely connect the mainland market with the LME, which is the world's most active metals trading market," Tong said.

"It'll not only cut delivery costs for such metals but also attract more enterprises to join Hong Kong's major commodity industrial chain and participate in developing the market," he added.

The LME, owned by HKEX, has around 450 storage facilities in 33 locations across the world.

LME-approved facilities in the SAR will store various metals, including aluminium, alloy, copper, nickel, lead, tin, and zinc, some of which are essential to develop industries such as electric vehicles and solar panels.