All articles tagged with #london metal exchange
Aluminum and nickel prices soared on the London Metal Exchange following the imposition of US and UK sanctions prohibiting the delivery of Russian metal produced after midnight on Friday. The sanctions, designed to limit President Putin's military funding, have introduced significant uncertainties into the metals market, which has already been affected by Russia's invasion of Ukraine.
The London Metal Exchange has banned deliveries of any Russian supplies produced after midnight on Friday in response to new US and UK sanctions, leading metal traders to anticipate dramatic price moves when trading reopens on Monday. While some expect prices of aluminum, copper, and nickel to rise due to the removal of a major producer from the market, others are concerned about the potential flood of old Russian metal onto the exchange. The industry is preparing for heightened volatility, with Russia accounting for a significant portion of global metal supply, and the LME's decision to allow deliveries of "old" Russian metal under certain conditions is expected to reignite the debate over banning Russian metal altogether.
The London Metal Exchange has banned deliveries of any Russian supplies produced after midnight on Friday in response to new US and UK sanctions, leading metal traders to anticipate significant price jumps for aluminum, copper, and nickel when LME trading resumes on Monday morning.
The US and UK have imposed new restrictions on trading Russian aluminum, copper, and nickel in an effort to limit President Putin's ability to finance military activities, with the London Metal Exchange and Chicago Mercantile Exchange barred from accepting new Russian supplies. The rules apply to metals produced on or after April 13, and the US is also prohibiting Russian imports of these metals.
JPMorgan is the owner of nine shipments of fake nickel discovered by the London Metal Exchange, which were found to contain bags of rocks instead of the valuable metal. The LME invalidated the shipments and delayed the relaunch of nickel trading during Asia hours. Nickel is used in industrial processes and is a key component in lithium-ion batteries for electric cars. The total amount of nickel involved is small, but this is the second scandal involving fake nickel in as many months. Trading in nickel is still suspended during Asia hours due to the crisis, and several trading firms that had their nickel trades canceled are suing the London Metals Exchange.
The London Metal Exchange has invalidated nine shipments of nickel due to fraud, with media reports revealing that the shipments contained bags of rocks instead of the valuable metal. The unlucky owner of the fake nickel shipments was revealed to be JPMorgan. The bank was likely unaware of the contents of the shipments, as they were already in the warehouse when the bank purchased them. The scandal is a blow for the London Metal Exchange, which is still recovering from its trading chaos just over a year ago.
JPMorgan Chase stored bags of stones in a Dutch warehouse, believing they contained $1.3 million worth of nickel. The London Metal Exchange revealed the mix-up last week, with the bags containing stones instead of nickel. The bags were reportedly bought by JPMorgan Chase years ago, and the company remains an active player in big metals. The logistics firm Access World, which owns and operates the warehouse, is likely to bear the burden of the mix-up.
JPMorgan Chase reportedly kept bags of stones in a Dutch warehouse, thinking they were filled with nickel. The London Metal Exchange revealed the mix-up last week, and the bags were worth $1.3 million if they contained nickel. The warehouse was owned and operated by logistics firm Access World, who will likely bear the burden of the mix-up. JPMorgan Chase bought the bags years ago and remains an active player in big metals.