Tuesday, April 05, 2022 7:10:31 AM
~*~Metals~*~-Behind Closed Doors. . . . . . .
Metals world agonizes over war but keeps buying from Russia
Bloomberg News | April 4, 2022 | 2:44 pm Intelligence Asia Europe Russia and Central Asia Gold Oil & Gas Palladium Platinum
Russia's Gokhran has bought only gold this year
Last month, 13 copper-industry representatives at the London Metal Exchange were asked whether Russian metal should be blocked from its warehouses. Ten of them said “yes.” But when advisory groups for nickel and aluminum discussed the same question, the general consensus was “no.”
The LME, which is the ultimate decision-maker, says it won’t take action that goes beyond government sanctions — which, so far, have left most of the metals industry untouched.
But the behind-closed-doors discussions reflect a wider angst over whether to keep buying from Russia, as the industry weighs the stigma from the war against its own commercial interests — and the fact that vital metals like aluminum and copper were in short supply even before the invasion of Ukraine.
For now, Russian metal is largely still flowing to the world’s factories and building sites. Many traders and fabricators who buy from Russian companies are tied in to pre-existing purchase deals that can extend over years. And commodities merchants have a well-earned reputation as buyers and financiers of last resort when others have long backed away.
Still, a growing number in the industry say they won’t take on new Russian business, and some are actively working to disentangle themselves. That’s making it ever-harder for Russia’s metals producers to sell whatever output is not already contracted, and may ultimately force them to cut production if there’s no change by the time long-term deals come to an end.
For the LME, the risk is that material mined in Russia starts piling up in its warehouses because it has nowhere else to go, creating dangerous dislocations at the nexus of the global metals trade.
continues here
https://www.mining.com/web/metals-world-agonizes-over-war-but-keeps-buying-from-russia/
CHARLIE RICH Behind Closed Doors
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Metals world agonizes over war but keeps buying from Russia
Bloomberg News | April 4, 2022 | 2:44 pm Intelligence Asia Europe Russia and Central Asia Gold Oil & Gas Palladium Platinum
Russia's Gokhran has bought only gold this year
Last month, 13 copper-industry representatives at the London Metal Exchange were asked whether Russian metal should be blocked from its warehouses. Ten of them said “yes.” But when advisory groups for nickel and aluminum discussed the same question, the general consensus was “no.”
The LME, which is the ultimate decision-maker, says it won’t take action that goes beyond government sanctions — which, so far, have left most of the metals industry untouched.
But the behind-closed-doors discussions reflect a wider angst over whether to keep buying from Russia, as the industry weighs the stigma from the war against its own commercial interests — and the fact that vital metals like aluminum and copper were in short supply even before the invasion of Ukraine.
For now, Russian metal is largely still flowing to the world’s factories and building sites. Many traders and fabricators who buy from Russian companies are tied in to pre-existing purchase deals that can extend over years. And commodities merchants have a well-earned reputation as buyers and financiers of last resort when others have long backed away.
Still, a growing number in the industry say they won’t take on new Russian business, and some are actively working to disentangle themselves. That’s making it ever-harder for Russia’s metals producers to sell whatever output is not already contracted, and may ultimately force them to cut production if there’s no change by the time long-term deals come to an end.
For the LME, the risk is that material mined in Russia starts piling up in its warehouses because it has nowhere else to go, creating dangerous dislocations at the nexus of the global metals trade.
continues here
https://www.mining.com/web/metals-world-agonizes-over-war-but-keeps-buying-from-russia/
CHARLIE RICH Behind Closed Doors
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