April 12, 2018 / 8:38 AM / 9 days ago

LME aluminium stocks jump by nearly 100,000 T after Rusal sanctions

LONDON, April 12 (Reuters) - Aluminium inventories in warehouses certified by the London Metal Exchange (LME) surged by nearly 100,000 tonnes in one day, data showed on Thursday, in a move traders and analysts said was sparked by Russian producer Rusal being hit by U.S. sanctions.

LME aluminium stocks jumped by 94,450 tonnes or 7.5 percent to 1,345,225 tonnes MALSTX-TOTAL, the highest since July last year, LME figures showed.

The bulk of the material arrived at LME Dutch warehouses in Vlissingen and Rotterdam.

The LME on Tuesday announced a suspension of Rusal branded material effective April 17 and analysts said there would be a rush to put material in LME warehouses.

Rusal’s metal in LME warehouses before the sanctions were announced on April 6 will not be affected, but sources say few companies will want to hold it.

Banks who have been financing aluminium in warehouses that contain Rusal metal would want to cut that exposure, traders told Reuters this week.

“LME warehouses can still put pre-sanction produced metal on to warrant after April but to avoid challenges, the next few days could see a rush of material,” ING analyst Oliver Nugent said in a note on Wednesday. (Reporting by Eric Onstad Editing by Keith Weir)

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