LME CEO Matthew Chamberlain announced that they are in discussions on whether Russian metals will be held in LME warehouses. In an interview with Bloomberg TV, Chamberlain stated that the LME does not want to be a part of financing Russia's war in Ukraine.
Russian metal producers are not yet facing sanctions. The LME copper committee, which includes members from major mining companies and investors, made a recommendation on Friday to stop metal deliveries from Russia to LME warehouses. Enforcement of this decision may cause more turmoil in the markets.
“If certain metals are banned in our warehouses, this decision will not only affect us but all markets,” Chamberlain said. For now, there are no sanctions against Russian metals,” he said. Referring to the possibility of a ban in the future, the expert said, “We are in talks with the governments regarding the concerns in the markets. We will see what happens.”
The ban on Russian metals can have negative effects on many metals, from copper to nickel and aluminum.
LME followed the nickel market as inventories decreased in the nickel market and buyers faced a tight supply. Chamberlain stated that they are following this issue closely.
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