SEATTLE (Scrap Monster): The London Metal Exchange (LME) will not ban Nornickel’s metal from its system, said sources. The Exchange noted that though the company’s Chief Executive Officer Vladimir Potanin is under UK sanctions, the company is not. The clarification came amidst concerns raised by industry sources that on the potential impacts of ban on trading of metals by Nornickel.
The Exchange had banned aluminum metal produced by Russian giant Rusal in 2018, following the ban imposed on the company by the U.S. Treasury Department. Following this precedent, the Exchange would be forced to ban Nornickel’s metals if sanctions are imposed on the company. It must be noted that the Western countries have not yet banned purchases of Russian metal.
According to LME, the details of the sanctions imposed by Britain on Potanin are under assessment. The impacts of the sanctions on the exchange, its participants and Norilsk brands are being evaluated. The exchange plans to update the market upon gaining further clarity on the matter.
A potential ban on Russian metal could result in shortage of the metal, which in turn may lead to fresh price surges. It must be noted that the prices of nickel have been on the rise since the beginning of the current year.