Support The Moscow Times!

RusAl Asks LME to Postpone Proposed Warehouse Overhaul

MOSCOW / LONDON — Russia’s United Company RusAl, the world’s biggest aluminum producer, asked the London Metal Exchange to postpone a proposed overhaul of warehouse rules, saying it could further distort the aluminum market.

The LME, the world’s largest marketplace for metals trading, has proposed rules under which warehouses would release more stocks than they take in.

RusAl chief executive Oleg Deripaska used strong language Wednesday in criticising the proposal by the new owners of the LME, Hong Kong Exchanges and Clearing.

“The intent of the HKEx to accelerate the transfer into the market of an additional 2 million tons of aluminum, accumulated and stored since the financial crisis, is an unprecedented intervention and one that RusAl strongly objects to,” he said in a statement.

“RusAl is concerned that a set of measures the HKEx, as the owner of LME, has proposed risk creating further aluminum market distortions. The company believes that these measures will lead to a less transparent marketplace.”

The LME’s proposal is a response to complaints by metals consumers that backlogs in deliveries from LME warehouses have driven spot aluminum surcharges, or premiums, to record highs.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.


Read more