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US, UK Sanctions on Russian Metals Cause Historic Price Surges in Aluminum, Nickel, Copper

Apr 15, 2024, 12:02 AM

The United States and the United Kingdom have jointly expanded sanctions against Russia by targeting its metal exports, a significant revenue source for Moscow following its 2022 invasion of Ukraine. These sanctions include a ban on Russian metals on exchanges, prompting the London Metal Exchange (LME) to suspend the listing of warehouses globally for metals produced by certain brands post-April 13, 2024. The LME has also imposed requirements to remain in effect until further notice and acknowledged potential market uncertainties due to the amended sanctions package. As a result, aluminum prices surged over 6%, nickel prices increased by 7%, copper and zinc rose by 2%, and aluminum experienced its most significant rally since at least 1987, reaching the highest level in decades. This dramatic market response underscores the sanctions' impact on global metal trade, with the LME noting the inability to monitor violations effectively and outlining specific reporting requirements for UK members and clients.