US, UK Sanctions Target Russian Metals, Driving Trade Towards China

As Western sanctions limit Russian metal exports, China emerges as a key trading partner, absorbing increased shipments and influencing global commodity prices.

• The US and UK have imposed new sanctions on Russian metals, specifically aluminum, copper, and nickel, to curb Russia's war funding against Ukraine.
• Shanghai Futures Exchange remains the only major bourse accepting new Russian metal productions, enhancing China's role in setting global commodity prices.
• Existing Russian metal stocks in global exchanges like the London Metal Exchange are exempt, allowing continued trading and minimizing market disruption.
• The sanctions have led to a significant increase in metal prices, with aluminum and nickel prices on the London Metal Exchange rising by about 2.3%.
• Analysts predict the sanctions will reshape global trade flows, with China likely benefiting from increased imports and greater pricing power over commodities.

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