LME warehouses turned out to be overstocked with Russian metals after trade restrictions
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In the warehouses of the London Metal Exchange (LME) in October, stocks of Russian aluminum, copper and nickel reached 338 thousand tons, which is 1.5 times more than a year earlier. This is reported by "Kommersant".
Thus, the share of Russian metals in the LME system accounts for 28.1%. It is based on aluminum (78%), followed by copper and nickel.
According to experts, the overstocking of Russian metals is taking place against the background of a twofold increase in global reserves. The trend is explained by a decrease in global demand, as well as restrictions on trade in Russian metals introduced by the West in April 2024. Sanctions against Russian metals prohibit the LME and the Chicago Mercantile Exchange from accepting new shipments of these products from the Russian Federation.
It was noted that for Russia, the sale of aluminum, copper and nickel through the LME was a backup option, since the bulk of products are sold under bilateral contracts.