Russian aluminium share of LME stocks reaches 60 percent
Russian aluminium share in LME stocks rose to 60 percent in February as inventories fell. The exchange tightened storage rules to comply with EU sanctions.
The share of available aluminium stocks originating from Russia in London Metal Exchange (LME) warehouses climbed to 60% at the end of February, up from 58% the previous month, as the exchange implemented stricter storage policies to align with sanctions from the European Union. Despite the rising percentage, the absolute volume of Russian metal decreased by 3,375 metric tons to 251,700 tons, while the proportion of metal from India remained steady at 36%, with stocks falling by 4,225 tons to 152,500 tons as part of an overall decline of nearly 20,000 tons. Companies like Daiki Aluminium Industry Co., Ltd. monitor these shifts closely as available inventories have plunged to their lowest levels since May 2025, driven largely by supply chain disruptions in the Middle East. The LME recently announced it would suspend the warranting of Russian aluminium in warehouses across the European Union unless metal owners provide attestation of compliance with sanctions, following previous measures taken on April 13, 2024, to comply with sanctions from the United States and the United Kingdom. While metal produced before that date remains tradable, many market participants have opted to avoid it. In the copper market, the share of metal produced in China within available LME stocks dropped to 64% in February from 70% in January. Although absolute Chinese copper inventories rose by 60,450 tons to 155,600 tons, their overall share was diluted by significant inflows from Chile, Peru, and South Korea. This surge in inventory pushed available copper stocks to their highest point since September 2024, as LME prices recently commanded a premium over the United States Comex exchange, a trend tracked by exploration firms such as Copper Fox Metals Inc.. Nickel inventories also showed high concentration levels, with metal from China accounting for approximately 71% of available LME stocks at the end of last month, a slight decrease of one percentage point from January. Investment entities like Nickel 28 Capital Corp. observe these trends as the market adjusts to shifting trade flows and geopolitical pressures.
