Media reported that London Metal Exchange (LME) will consult on the introduction of a trading ban on Russian metals. The LME will begin discussions which will be the first step towards a possible ban on new supplies of Russian metals. Russia is a major producer of nickel, aluminum and copper and a ban could have significant implications for markets. Recall that it was the fear of sanctions disrupting Russian nickel supply that triggered a massive nickel squeeze in March.
Market reaction could be spotted primarily in NICKEL and ALUMINUM, with both metals jumping around 4% on the news. However, some of the upward movement has already been erased.
Nickel and aluminum jump on news of a possible LME ban on Russian metals. Source: xStation5
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