10/6, 9:03 PM (Source: TeleTrader)
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Consumers may not be willing to accept Russian metal - LME

The London Metal Exchange (LME) said in a discussion paper released on Thursday that it is aware that "an increasing number of consumers may be expressing an unwillingness to accept Russian metal in 2023."

The LME launched the study to determine what steps the exchange could take if metals produced by Russia become targets of a wider sanctions regime, similar to those already imposed against other Russian commodities. The LME noted there are growing ethical and commercial concerns in the metals market and presented three options to address the issue: refraining from any action until sanctions are actually imposed, introducing limits on deliveries of Russian metals, or imposing a suspension against "the warranting of Russian metal in LME warehouses globally."

"Acting pre-emptively could cause further market distortion during an already difficult time but, on the other hand, a failure to take action now could mean that the LME's hands are tied in the future, when any move to address the situation could be undermined by the volume of Russian metal already on warrant," the exchange specified in the document.

Baha Breaking News (BBN) / MS