This substantial redistribution in aluminium stock origins underscores the evolving dynamics of global metal trade, potentially influenced by geopolitical factors and shifting economic alliances. The marked decrease in Russian aluminium's presence could indicate broader market adjustments or regulatory impacts, while India's increased share highlights the country's expanding role in the global aluminium supply chain.
There has been a significant shift in stock levels following the LME's decision to prohibit all Russian aluminium, copper, and nickel produced from April 13 in compliance with USA and UK sanctions over the Russia-Ukraine geopolitical crisis.
The on-warrant aluminium stocks of all origins in LME-registered warehouses quadrupled in May, with the latest data indicating that the lion's share of this increase was from India, a significant player in the market. Specifically, Russian primary aluminium stocks on LME warrant—documents that confer ownership—rose to 246,950 tonnes last month, up from 116,325 tonnes in April. Meanwhile, Indian-origin stocks surged to 293,325 tonnes from 12,275 tonnes, underlining India's growing influence in the industry.
