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Click here to download the LME’s response to the discussion paper on Russian metal issued on 6 October 2022.
The LME also has the following summary statement:
“The LME’s recently issued discussion paper was designed to gather market views on the expected acceptability of Russian metal in 2023, and whether the LME should take action in order to maintain a fair and orderly market should market participants no longer accept delivery of Russian material. The LME has concluded, on the basis of its thorough review of the 42 responses it received, that for the most part a material portion of the market is still planning to accept Russian metal in 2023. Therefore, the LME does not propose at this time to prohibit the warranting of new Russian metal nor to impose thresholds or limits to the amount of Russian stock permitted in LME warehouses. This decision and our approach more broadly are based wholly on our responsibilities to the market, with consideration of compliance with government sanctions and our duty to maintain an orderly market, which includes providing a reliable price reflective of global market conditions. While there is evidently an ethical dimension as to the global acceptability of Russian metal, we believe the LME should not seek to take or impose any moral judgements on the broader market.
We continue to monitor the through-flow of Russian metal in LME warehouses, and in order to provide increased transparency of this data to the market, we intend to publish regular reports from January 2023 detailing the percentage of warranted Russian metal in LME warehouses. The LME is grateful to all respondents who took the time to provide their feedback and views during the discussion period.”
