Russian aluminium giant UC Rusal denied reports last week that it plans to offload its wares into London Metal Exchange warehouses in the Far East.
Last week reports emerged from unidentified sources claiming knowledge that Rusal is mulling such an act in order to find new buyers for its primary aluminium. Though not targeted for sanctions itself, Rusal has suffered from sanctions and other ill will against all things Russian as a result of the Russian military’s invasion of Ukraine in February.
A few of Rusal’s buyers have already gone on record as opting not to buy from the firm going forward, while others report accepting Rusal aluminium at discount rates.
According to reports, the LME is weighing whether it should restrict trade of Russian aluminium, nickel, and copper altogether.
However, a Rusal spokesperson said a plan to ship aluminium directly to LME warehouses “does not correspond to our physical sales, where we continue to service our global customers, including negotiating and planning 2023 offtakes.”
For its part, the LME has yet to decide what, if any, permanent actions it may carry out, according to Chief Executive Matthew Chamberlain.
“A discussion paper could also lay out potential options which could be pursued on the basis of market feedback gathered, including the option to take no action.”
Chamberlain did not specify what all options may be taken under advisement during such a consultation.