LME considering ban on Russian metal - report

The London Metal Exchange is reportedly launching a discussion paper that marks the first step toward a potential ban on new supplies of Russian metal.

Bloomberg on Thursday cited people familiar with the matter as saying that the exchange plans to initiate a discussion on whether and under what circumstances it should block new supplies of Russian metal from being delivered to its network of warehouses.

Any move by the LME to block Russian supplies could have significant ramifications for the global metals markets, as it is a major producer of aluminium, nickel and copper.

Launching a discussion paper doesn’t mean the LME has made any decisions about what it will do, but the move marks a shift in approach, Bloomberg said.

The LME had previously said it wasn’t planning to take any action outside the scope of sanctions, which for the most part have not affected Russian metal producers like United Co Rusal International PJSC and MMC Norilsk Nickel.

"The LME continues to take the required action to ensure market stability in response to sanctions," the bourse said in a statement, adding that it will keep the situation under review as it prioritises an "orderly market".