Zinc, Copper Gain After LME Bans New Metals from Russian Giant




  • In Business
  • 2022-10-06 02:06:12Z
  • By Bloomberg
 

(Bloomberg) -- Zinc and copper gained after the London Metal Exchange said it will restrict new deliveries of the metals from Russia's Ural Mining & Metallurgical Co. and one of its subsidiaries.

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The bounce gave support to the industrial metals, which have slumped this year amid concerns over demand from China's Covid Zero-impacted construction sector and a slowing global economy. Zinc is down about 30% since April, while copper has fallen 26% after a March peak.

Starting immediately, metal from UMMC or its Chelyabinsk Zinc unit can only be delivered to LME warehouses if the owner can prove to the exchange that it won't constitute a breach of sanctions.

The industry has been grappling with the question of how to handle supplies from Russia -- a major producer of aluminum, nickel and copper -- since the invasion of Ukraine in February, and the debate has intensified over the past month.

Some European buyers have been trying to avoid Russian supplies. Meanwhile, United Co. Rusal International PJSC said there's "no basis" for any moves by the LME to block its aluminum, ratcheting up its push back after US rival Alcoa Corp. said the exchange should stop accepting Russian metal.

Zinc was up 4.1% on the LME as of 9:45 a.m. in Singapore, while copper climbed as much as 2.3% after slipping 0.5% Wednesday. Aluminum edged 1.1% higher.

Meanwhile, iron ore is continuing to trend downward this week, and the steel-making material has tumbled more than 40% since March.

Iron ore was little changed at $93.60 a ton in Singapore, to be down 2% for the week. Trading in China is closed this week for holidays.

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