Glencore ships Rusal aluminum to LME warehouses in South Korea – Reuters

Glencore PLC delivered an undisclosed amount of aluminum made by Russian producer UC Rusal IPJSC into The London Metal Exchange Ltd.-registered warehouses in Gwangyang, South Korea, Reuters reported, citing two sources familiar with the matter.

The move by the Swiss commodities trader demonstrated the challenges Rusal is facing in securing buyers for its product amid Russian sanctions, the report said.

Certain buyers and end users are avoiding Rusal's aluminum. Unwanted metal usually ends up in the LME system, which is "a market of last resort for consumers and producers," according to Reuters.

S&P Global Commodity Insights sought comment from Glencore and Rusal. Glencore issued no comment, while no response has been received from Rusal as of writing.

The U.S. government is reportedly considering a potential ban on Russian aluminum imports in response to Russia stepping up military presence in Ukraine. Aluminum prices inched up Oct. 12 on concerns the restriction may cause aluminum supply shortages.

In 2020, Glencore secured a primary aluminum supply deal with Rusal, valued at up to $16.32 billion.

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