Russian Aluminum's LME Presence Increases
Landmark Decision
On January 15, Reuters reported that the amount of Russian aluminum stored in London Metal Exchange (LME) warehouses has significantly increased.
This news follows the European Union's (EU) decision to ban the import of aluminum wire, foil, tubes, and pipes from Russia.
EU's Response to Russia's Actions
Aluminium Imports:
- Aim to reduce EU reliance on Russian aluminum
- EU countries seeking alternative suppliers
- Prohibition on accepting new aluminum, copper, and other Russian metals on metal exchanges
Russian Response:
- Rusal, Russia's largest aluminum producer, claims sanctions will have minimal impact
- Gwangyang deliveries reported to be Russian aluminum delivered by Glencore
- Russian aluminum's LME on-warrant stocks surged by over 200,000 tons
Industry Pressure:
- European aluminum producers and four EU nations advocating for expanded sanctions
- Aim to prevent Russian aluminum from entering the EU market through loopholes
- Pressure on LME to prohibit storage of Russian aluminum
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