LME Banned Russian-Origin Metal Following New Sanctions

SEATTLE (Scrap Monster): The London Metal Exchange (LME) announced that it has banned Russian-origin metal from its system with effect from 13^th April, 2024. This follows the fresh sanctions imposed by the U.S. and UK on Russia for its invasion of Ukraine. The sanctions are aimed at restricting Russian metal export revenues.

Earlier during last week, the U.S. Department of Treasury and the British government had prohibited the LME as well as the Chicago Mercantile Exchange (CME) from accepting newly produced metals such as aluminum, copper and nickel from Russia.

ALSO READ:

Rusal's 2023 Profit Slumps on Subdued Prices, Lower Production

LOndon Metal Exchange Announced Roll Out of New Organisational Design

The LME clarified that the metal can be put on LME warrant if the owner of the Russian metal is able to provide evidence that it was produced prior to 13th April. The metal warrants issued on or after 13^th April for metal produced before the date will be subject to restrictions that prevent UK LME Members and clients from cancelling or withdrawing the corresponding metal unless they are doing so for the account of a non-UK Client, the statement issued by the LME said.

Meantime, LME officials noted that the continued trading of Russian metals off of the exchanges is expected to be at a discount.

It must be noted that the high share of Russian-origin metal in LME inventories has been a concern for competing producers as well as Western consumers.