Earlier this week the London Metal Exchange (LME) made the decision to ban Russian aluminium from its warehouses in the United States due to the recently enacted import tariffs.
Late last week the Biden Administration announced new import tariffs on Russian aluminium of 200 percent. These tariffs will go into effect on March 10.
In a statement, the LME elaborated upon its reasons for making the move.
“For the avoidance of doubt, no further changes are being made to the ability to warrant Russian metal in warehouses outside of the U.S.”
The LME went on to say that it removed Russian aluminium from its US warehouses “in order to minimise the risk of price dislocation.”
US warehouses currently hold very little Russian aluminium, the LME concluded, comprising of 400 metric tons of NASAAC. That amount won’t be usable for settling NASAAC futures, the exchange noted.
The LME has been under pressure to ban Russian aluminium from its trading platform entirely, but it has yet to do so. Last year the exchange noted that, while some companies have sworn off Russian aluminium, most of its members are continuing to trade with Russian aluminium companies.
Last week the Biden Administration levied new import tariffs on Russian aluminium as part of a holistic approach it hopes will apply the maximum pressure possible on Moscow while making the least impact upon the American market.