Russia is now the biggest source of aluminum available in London Metal Exchange warehouses, according to the bourse’s latest origin report.
(Bloomberg) — Russia is now the biggest source of aluminum available in London Metal Exchange warehouses, according to the bourse’s latest origin report.
At 220,575 tons, Russian primary aluminum made up 52% of LME on-warrant metal at the end of March, up from 46% in February, data released Tuesday show.
India, another key exporter, is the other major source of LME aluminum stocks.
Since February, the LME has been publishing the country of origin for the metal that backs its futures contracts amid debate over whether it should be allowing Russian stocks to trade on the exchange.
Last year, it decided against a ban.
Still, the data could add to concerns that the LME’s prices will end up reflecting a benchmark price of Russian material, which trades at a discount in the spot market due to widespread self-sanctioning.
Russian Aluminum Inventories Jump With LME Warehouse Inflows
The LME’s on-warrant copper stocks were 49% Russian origin at the end of March, down from 82% in February, with the data indicating outflows of 8,250 tons.
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