# Banning Russian aluminium would create uncertainty about LME’s role -Rusal Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-06 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Rusal warns banning metal will fuel LME volatility Meta Description: Rusal, the world's largest aluminium producer outside China, cautions that banning its metal could lead to market uncertainty and liquidity issues. URL: https://financedigest.com/banning-russian-aluminium-would-create-uncertainty-about-lmes-role-rusalhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-05t162001z1lynxmpei940vprtroptp4ukraine-crisis-rusal-aluminium-1736815093879-compressed.jpg) LONDON (Reuters) – Banning Rusal’s metal will fuel volatility in the London Metal Exchange’s aluminium contracts and create uncertainty about the exchange’s role in the metals industry, the Russian aluminium giant said in a letter seen by Reuters. Last week, the world’s largest and oldest market for trading metals, said it was considering a consultation on whether Russian metal should continue to be traded and stored in its system. The letter addressed to “partners” said that if there is a consultation, Rusal will highlight potential impacts such as disruption of the aluminium supply chain due to “potential change of regional delivery dynamics”. Rusal, the world’s largest aluminium producer outside China, is [expected to account for 6% of global supplies](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") of the metal this year. Excluding Rusal’s metal could mean [“increasing market volatility due to restrictions on the pool of physical liquidity on the LME,” the letter emailed to “partners”](https://www.financedigest.com/route-genie-partners-withnorsk-global-to-provide-retailers-with-increased-international-carriage-choice.html "Route Genie Partners WithNorsk Global To Provide Retailers With Increased International Carriage Choice") on Oct. 5 said. (A ban would) create uncertainty around the [role of the LME in the market](https://www.financedigest.com/the-valuable-role-ecommerce-social-media-marketing-will-play-in-keeping-businesses-afloat-during-lockdown.html "The valuable role Ecommerce/Social Media marketing will play in keeping businesses afloat during lockdown") due to departing from applicable laws, thus making the exchange less attractive to all participants. This, Rusal said, would create [liquidity issues and risk management](https://www.financedigest.com/britains-post-brexit-asset-management-revamp-eyes-liquidity-tokenisation.html "Britain’s post-Brexit asset management revamp eyes liquidity, tokenisation") problems for all segments of the aluminium industry. Aluminium [industry sources said there was some concern that Rusal would not be able to sell its metal and would deliver it to registered warehouses of the 145-year-old metal exchange](https://www.financedigest.com/gumgum-announces-industrys-first-100-brand-safe-ad-exchange.html "GumGum Announces Industry’s First 100% Brand Safe Ad Exchange"). We can confirm categorically there are no plans to do so, as our focus [remains on executing our current business](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword"), business secured for 2023 and business in finalisation,” the letter said. In addition, Rusal also [notes the alarmist views expressed by other interested parties that also contain unfounded statements that we regard as being harmful to maintaining an orderly market.”](https://www.financedigest.com/the-chelated-iron-agricultural-micronutrient-market-to-escalate-on-a-holistic-note.html "The Chelated-Iron Agricultural Micronutrient Market To Escalate On A Holistic Note") Rusal said in a separate statement on its website that its sales book is solid, and the [company has no need to deliver](https://www.financedigest.com/swiss-insurance-company-helvetia-uses-squirro-to-deliver-better-search-results-to-its-five-million-customers.html "Swiss insurance company Helvetia uses Squirro to deliver better search results to its five million customers") metal to LME warehouses. (Reporting by Pratima Desai and Polina Devitt; editing by David Evans and Bernadette Baum) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---