The London Metal Exchange (LME) is responding to new US and UK sanctions, prohibiting the delivery of any Russian metal produced after April 13.

Affected by this, on April 15, LME copper opened up more than 2%, LME nickel rose more than 7%, and LME aluminum rose more than 6%.

Russia, on the other hand, is one of the major producers of aluminum, copper, and nickel. According to data from consulting firm CRU Group, Russia supplies about 6% of the world's aluminum, 5% of nickel, and 4% of copper. In LME, its position is even more important, especially in the nickel market. MMC Norilsk Nickel PJSC (MMC Norilsk Nickel PJSC) has long been the largest supplier of refined nickel.

Some analysts believe that sanctions against Russian metals by the US and Britain are aimed at limiting Russia's export revenue. US officials said that in the past two years, Russia has earned $40 billion by selling these metals.

These scenarios are not unfamiliar to traders. After experiencing the nickel overrun incident that almost destroyed LME in March 2022 and the United Co Rusal International PJSC (United Co Rusal International PJSC) sanctions that led to chaos in 2018, they have become accustomed to sharp market fluctuations.

Despite this, industry insiders believe that the new restrictions are unlikely to have as drastic an impact as in the past. Russia's two largest metal companies, Rusal and Norilsk Nickel, have greatly reduced their ties to the Western financial system compared to before, and the industry has prepared for possible sanctions in the past two years.

Editor/Somer