The London Metal Exchange has increased stocks of raw materials from Russia

Inventories of Russian raw materials on the London Metal Exchange (LME) are growing as many consumers are reluctant to buy copper and nickel from Russia due to sanctions, which reduces demand. The newspaper reported Financial Times with reference to the LME report.

According to the LME, at the end of January, 94% of the copper in the warehouses of the exchange was Russian-made, compared with 58% at the end of October – stocks are approaching the highest level in the last ten years. By the end of January, the share of primary aluminum reserves from Russia increased to 41%, nickel – up to 15.8%. However, the share of aluminum alloy reserves from Russia decreased to 8%.

The LME explained that, despite such indicators, the demand for Russian metals remains, as they continue to be taken from the warehouses of the exchange.

In October 2022, the LME asked market participants for their opinion on whether it is worth keeping Russian metal in their warehouses at all. However, in the end, to ban the purchase of Russian raw materials, the stock exchange did not become. The exchange’s management said the ban “would affect customers more than the LME itself” and that the restrictions would be “too difficult to implement.”

In September the agency Bloomberg citing sources, it was reported that Rusal could redirect aluminum supplies to LME’s Asian warehouses from Vladivostok, as Western buyers refuse to buy Russian raw materials.

Anastasia Larina