As soon as the news came out, LME base metals moved, and aluminum futures hit its biggest ever increase of 8.5%, with prices reaching its highest since September 19 - $2,300, while nickel and zinc rose 6% and more than 4%, respectively.

London Exchange (LME) said on 9 March 29 that it is currently discussing whether Russian metals are prohibited from entering its registered warehouse. mentioned whether to "take action" on the three most important metal production companies in Russia. As soon as the news came out, LME base metal moved, and aluminum futures hit the largest increase in history 8.5% , and the price reached the highest point since March 19--2300 USD, while nickel zinc rose by 6% and exceeded 4% respectively.

(Source: Zitu.com)

It is understood that shortly after the outbreak of the Russian-Ukrainian conflict, the relevant LME committee proposed to ban Russia's metal supply. Although there were many opposition voices at the time, the approval rating continued to rise in the later period.

The difference between LME's views is that many traders say that if LME formally finalizes the decision, it will cause losses, and LME may face "legal challenges". It is worth mentioning that the nickel price soared earlier this year, and the cancellation of billions of dollars in nickel transactions has made it a "thorn in the eye" for hedge funds and trading companies.

Related statistics show that Russia produced 920,000 tons of refined copper last year, accounting for 3.5% of the world's total production. Since refined copper is a deliveryable form of LME, the role of Russian copper products in LME is particularly important.

(Source: Zitu.com)

Even if the United States is "harsh" against Russia, it must carefully "avoid" sanctions on Russian metals, and the discussion of LME also stated that this will have an impact on supply.

It is reported that the United States has not interrupted the import of Russian metal products since February. Data shows that as of August, the United States has imported more than 900 ships in Russia, totaling more than 264 million tons of metal products, and buyers include corporate giants like Boeing that hold tens of billions of government orders in their hands.

(Source: Zitu.com)

As early as 2018, LME refused to accept Russian aluminum products, and the consequence was that aluminum rose by 30% in just a few days. Now that the United States and other traders have such a big reaction to the discussion of LME, it is nothing more than just not wanting to experience such a tragic situation again.

text | Wei Yansong Title | Huang Zixin Review | Zeng Yi