May LME Warehouse Aluminum Inventory: Half from India, Russian Aluminum Share Declines
According to external sources on June 10, the London Metal Exchange (LME) reported that in May 2024, the proportion of Russian-origin aluminum in LME-approved warehouses decreased from 89% in April to 42%, while the share of Indian aluminum jumped from 9% to 50%.
This change occurred following the LME's decision to ban all Russian-produced aluminum, copper, and nickel from entering its system starting April 13, in compliance with sanctions imposed by the United States and the United Kingdom.
On April 13, the US and UK announced new trading restrictions on aluminum, copper, and nickel produced in Russia. According to the new regulations, the LME and the Chicago Mercantile Exchange (CME) are prohibited from using Russian aluminum, copper, and nickel produced on or after April 13. However, metals produced before this date are not subject to these restrictions.
In May, the total registered aluminum stock across all origins in the LME grew fourfold. Data showed that the majority of the inflow came from India.
The data indicated that the registered inventory of Russian primary aluminum on the LME increased from 116,325 tons in April to 246,950 tons. Meanwhile, the registered aluminum inventory from India surged from 12,275 tons to 293,325 tons.
The inflow of aluminum inventory in May was registered at warehouses in Port Klang, Malaysia.
LME's May data showed that almost all Russian aluminum, copper, and nickel were stored in the category 1 registration system, which issued warrants before April 12.
The LME reported that the proportion of Russian copper in warehouses decreased from 50% in the previous month to 40%, with the quantity falling from 47,350 tons to 44,525 tons.
The proportion of Russian nickel in warehouses dropped from 33% to 31%, with the quantity decreasing from 24,810 tons in April to 24,204 tons in May.
