Russian aluminium stocks surge to 50% in LME warehouses

The on-warrant aluminium stocks in LME-registered warehouses, encompassing all origins, decreased significantly by 21 per cent in June, underscoring the gravity of the situation. The data revealed that the majority of this outflow was attributed to Indian metal.

Specifically, Russian aluminium stocks on LME warrant—a title document conferring ownership—declined to 232,350 tonnes last month from 246,950 tonnes in May. Meanwhile, stocks of Indian origin experienced a sharp decline, falling to 188,800 tonnes from 293,325 tonnes.

The surge in stocks observed in May was in response to the LME's decision to ban from its system all Russian aluminium, copper, and nickel produced from April 13 onwards.

In May, the majority of the aluminium inventory increase was observed in the LME-registered warehouses located in Port Klang, Malaysia. This surge, reportedly driven by the influential financial arrangements orchestrated by trading houses and warehouse operators, underscores these entities' significant role in the industry.

Additionally, LME data released on July 10, 2024, revealed that the load-out queue for aluminium at Port Klang, managed by warehouse operator ISTIM UK Ltd, increased significantly to 253 days in June, up from 159 days in May and zero days in April.