The prices of aluminum, nickel and copper soared on Monday on the London Metal Exchange (LME) after the United States and the United Kingdom banned the import of metals of Russian origin into the framework of sanctions to reduce Moscow’s revenues.
The sanctions taken against Russia by the United States and the United Kingdom are having consequences on the stock markets. The prices of several industrial metals, particularly nickel, have soared on the London Metal Exchange.
Aluminum thus peaked on Monday on the LME at 2,728 dollars per tonne and copper at 9,640.50 dollars, records since June 2022. Nickel, for its part, climbed to its highest price since September, at 19,355 dollars. per ton.
Copper is widely used in industry, particularly for making electrical circuits. Aluminum is widely used in the automotive industry and nickel is essential to the manufacture of stainless steel and electric vehicle batteries.
This price increase comes after Washington’s announcement on Friday of a ban on the importation into the United States of aluminum, copper and nickel of Russian origin, as part of additional sanctions taken with the United Kingdom. United and aimed at reducing Moscow’s revenues.
“Metal exchanges, such as the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME), will not be allowed to accept Russian-produced aluminum, copper and nickel. Metal exchanges play a central role in facilitating the trade of industrial metals around the world“, the US Treasury emphasized on Friday.
Punishments “reflect the UK government’s intention to restrict the financial benefits the Russian government derives from metals produced in Russia and traded around the world“, noted the London Metal Exchange in a notice published on Saturday.
The LME states “take into account all sanctions” in its operations.
Russian aluminum giant Rusal said in a statement on Monday.rating of actions on Russian metals recently introduced by the American and British governments“.
She will not haveno consequences (on his) supply capacity since delivery logistics solutions (…) access to the banking system, overall production and quality systems are not affected“, he however argued.
Rusal also says he always observes “strong demand for Russian metal“.
Metals are Moscow’s main export product after energy, although their value has declined since Russia’s invasion of Ukraine, the British government detailed in a separate statement on Friday.
These exports represented $25 billion in 2022 before falling to $15 billion in 2023.due to efforts by the G7 and its allies to restrict the market“, it was specified.
“It is expected that after the new sanctions, aluminum exports from Russia to China will increase“, explain the Marex brokers.
The trains of Western sanctions against Moscow target Russia’s financial windfall, essential to finance its military offensive in Ukraine. The country has redirected its exports towards its Asian economic partners, such as India and China for its oil.
