Key Takeaways
- Russian-origin aluminium's share in London Metal Exchange warehouses hit 95% in June.
- Indian aluminium stocks fell sharply, leaving only 12,575 tons available.
- Chinese copper and nickel shares also saw changes, with Chinese copper rising to 59%.
The share of Russian-origin aluminium in London Metal Exchange (LME) warehouses rose significantly to 95% in June from 93% the previous month. This dominance is due to a steep decline in Indian aluminium stocks, which fell by 4,875 tons to just 12,575 tons available.
Total available aluminium inventories decreased by 3% to 246,600 metric tons, marking the lowest level since April 2025. The conflict in the Middle East has tightened global supply, contributing to this reduction.
Despite the ban on Russian aluminium produced after April 13, 2024, due to Western sanctions, many traders have still shunned the material. This leaves a significant portion of the market dominated by Russian producers, who continue to meet demand despite the restrictions.
In contrast, Chinese-made copper's share in available LME stocks increased to 59% from 53%, while its volume fell by 22,375 tons to 118,650 tons. This increase was due to declines in copper stocks from other major producers such as Australia, Chile, Peru, and South Korea.
Chinese-origin nickel's share also saw a slight decrease to 70% of available LME stocks at the end of June, down from 75% in May. The overall volume of available nickel decreased by 12,375 tons to 89,325 tons.
The changes in metal shares reflect the complex interplay between supply constraints and market dynamics. As global trade tensions persist, the LME continues to navigate through these challenges, impacting the availability and pricing of key metals like aluminium, copper, and nickel.
Traders are adapting to these new realities, with some seeking alternative sources or adjusting their strategies in response to the reduced options available on the LME. The ongoing geopolitical situation is expected to continue influencing market trends and supply chains.
