London Metal Exchange Decided Not to Ban Fresh Deliveries of Russian Metal
Aluminum | 2022-11-14 11:43:03
The discussion period had closed on 28th October, 2022.
By Paul Ploumis
SEATTLE (Scrap Monster): The London Metal Exchange (LME) has decided not to ban new deliveries of Russian metal. In its feedback, the trade body noted that a large portion of the market is still accepting Russian metals, with some relying entirely on metal supplies from that country.
Leading U.S. aluminum producer Alcoa Corporation and a handful of other large suppliers for Russian aluminum had had been calling for exclusion of the Russian metal from the exchange. On 6th October, 2022, the LME had a discussion paper, inviting feedback on the ongoing acceptability of Russian metal for good delivery on the Exchange following Russia’s invasion of Ukraine. The discussion period had closed on 28th October, 2022.
The decision by the LME has come as a major blow for aluminum producers in Western countries and a few traders who have been pressurizing the exchange to take action against Russian metal.
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The LME noted that the exchange warehouse stocks are likely to surge higher in the forthcoming months, as demand has been badly impacted by slowdown in global growth. Meantime, the LME plans to release a monthly report outlining the percentage of the Russian origin metal on warrant in its warehouse.
Alcoa expressed disappointment over the LME decision.
