European Industry Associations Urge LME to Ignore Calls for Ban on Russian Aluminium

Five European industry associations have issued a joint statement urging the London Metal Exchange (LME) to disregard calls for a ban on Russian aluminium. The groups, including the Federation of Aluminium Consumers in Europe (FACE), believe that imposing restrictions on Russian aluminium supplies would harm smaller metal users in Europe. Norsk Hydro, a Norwegian producer, had previously called on the LME to reconsider its decision not to ban Russian aluminium from its warehouse network. However, FACE and other associations argue that such a move would have a devastating impact on the EU aluminium industry value-chain. The LME had decided against imposing a ban on Russian aluminium last year, as there were no western sanctions on the metal at the time. The share of Russian-made aluminium in LME-registered inventories has increased significantly since then, prompting concerns over the benchmark status of LME contracts. European Aluminium has also stated that it is considering lobbying for European Union sanctions on Russian aluminium. However, FACE has previously urged European authorities to prevent sanctions on Russian aluminium that could harm numerous businesses. Four other associations have supported FACE’s stance, with the German Federal Association for Economic Development and three Italian groups joining the call.