LME to restrict new deliveries of metals from Russia

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.

The bounce gave support to the industrial metals, which have slumped this year due to concerns from China's Covid Zero-impacted construction sector and a slowing global economy. The price of zinc has fallen 30% since April, while the price of copper has fallen 26% after a March peak.

If the owner proves to the exchange that it won't breach the sanctions, the metal from UMMC or its Chelyabinsk Zinc unit can only be delivered to LME warehouses.

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

European buyers are trying to avoid Russian supplies. The US rival Alcoa Corp. said the exchange should stop accepting Russian metal, and there was no basis for any moves by the LME to block its aluminum.

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 was 1.1% higher.

Iron ore is continuing to slide downward this week, and steel-making material has tumbled more than 40% since March.

Iron ore was down 2% for the week at $93.60 a ton in Singapore. This week, the trading in China is closed for holidays.

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