9,367.77 TRY BIST 100 BIST 100
4.79 CNY CNY CNY
34.56 USD USD USD
36.19 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
41.35 TRY Interest Interest
74.24 USD Fossil Oil Fossil Oil
30.90 USD Silver Silver
4.09 USD Copper Copper
100.80 USD Iron Ore Iron Ore
365.00 USD Shipbreaking Scrap Shipbreaking Scrap
2,982.57 TRY Gold (gr) Gold (gr)

Global metal markets react to US and UK ban on Russian exports

The US Treasury Department and the British government on 12 April banned the LME and the Chicago Mercantile Exchange (CME) from accepting new Russian aluminium, copper and nickel production from 13 April.

Global metal markets react to US and UK ban on Russian exports

The United States and the United Kingdom have implemented bans on Russian-made aluminium, copper, and nickel shipments to key exchanges, including the London Metal Exchange and Chicago Exchange warehouses, as well as direct imports. These restrictions, effective for metals produced after April 13th, are poised to disrupt supply chains and potentially drive prices higher. However, exceptions may be considered on a case-by-case basis. Notably, the move makes the Shanghai Futures Exchange the only major commodity exchange still accepting Russian supplies of these three metals.

Prices have risen sharply since the ban was introduced, reflecting market fears of reduced supply. On the London Metal Exchange (LME), nickel prices soared by 8.33% to $19.17 thousand per tonne at the opening of trading. While aluminium prices on the LME jumped 9.4%, the Shanghai Futures Exchange saw a more moderate reaction, with prices up no more than 2.9% from Friday's closing level. Currently, LME warehouses hold 400,000 tonnes of Russian metal out of a total reserve of 1 million tonnes, with aluminium dominating at 311,000 tonnes, followed by copper at 61,000 tonnes, and nickel at 25,000 tonnes.

The three-month aluminium contract rose in London to $2624 per tonne the highest value since June 2022. The cost of nickel with delivery in 3 months rose on the LME by 3.4% to $18400 per tonne, having reached the maximum in September 2023.

The sanctions are expected to redirect Russian metal exports to countries beyond the reach of US and UK jurisdictions, with China likely to see increased imports.

Despite the absence of formal sanctions, China's imports of Russian aluminium have reached record levels. Russian aluminium giant United Company RUSAL International PJSC generated 23% of its revenue from China in 2023, compared with just 8% in 2022.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

South Korea's crude steel production decreased by 18.3% in October

Friday, November 22, 2024

SSAB and Saint-Gobain's slag reprocessing plant in Raahe progresses

Friday, November 22, 2024

US Steel Producer partners with Primetals Technologies for EAF Ultimate

Friday, November 22, 2024

Imported scrap prices on the decline, demand stagnant!

Friday, November 22, 2024

Roadmap for India’s steel sector: Demand, imports and future plans

Friday, November 22, 2024
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now