Britain and the United States have joined forces to impose new sanctions on Russian metals to limit Russian funding sources.
In the early morning of April 13, Beijing time, the United States and Britain announced the implementation of new measures against Russia.LordoftheringspinballThe trading restrictions are aimed at Russian-made aluminum, copper and nickel.
On the one hand, from Saturday, April 13, the world's major metal exchanges, such as the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME), are not allowed to use Russian-produced aluminum, copper and nickel on and after April 13.
However, Russian aluminum, copper and nickel produced before April 13 are not subject to the new regulation and can still be traded on the global market.
It is reported that while LME plays a key role in setting global prices, the vast majority of the world's metals are sold directly from producers to traders and consumers, who have probably never entered LME's warehouses.
On the other hand, the United States also banned the direct import of the three metals from Russia in an attempt to limit Russia's export capacity.
The media pointed out that the decision is unlikely to curb Russia's ability to sell these metals because sanctions will not prohibit non-US individuals and entities from buying Russian aluminum, copper and nickel.
Some analysts pointed out that as Russia is one of the major producers of aluminum, copper and nickel, the new US sanctions against Russia may lead to a shortage of global supply of these metals and push up prices. On Friday, COMEX copper futures rose more than 0%.Lordoftheringspinball.8% to above $4.289. AA's u.s. shares rose more than 1.6% to $35.78 in after-hours trading. Southern Copper Co. (SCCO) rose more than 1.5% in after-hours trading to $116.99.
This article is from Wall Street.