“A possible ban on deliveries from Russia by the London Metal Exchange will be a seismic event for the steel industry, cutting off a number of the world's largest companies from the main world market,” he writes.
The specialist recalled that the exchange had not yet made such a decision, but an official three-week discussion of the possibility of banning Russian metal had already begun.
Farchi recalled that Russia accounts for about 9% of all nickel reserves, 5% of aluminum and 4% of copper.
So, if the sanctions are approved, they will become a headache, including for the Swiss Glencore Plc., Which has a contract with Rusal.
On October 6, the price of aluminum on the London Metal Exchange rose to $2,400 per ton for the first time since August 31.