During a recent meeting between President Vladimir Putin and members of the Russian government, Putin directed Prime Minister Mikhail Mishustin to explore the possibility of restricting exports of key raw materials. The President specifically mentioned nickel, uranium, and titanium but suggested that other essential resources should also be considered for potential export restrictions.

What Other Raw Materials Could Be Impacted?

In the same meeting, officials discussed the potential scarcity of additional raw materials within Russia. Among those mentioned were chrome, manganese, fluorspar, tungsten, and aluminum. This raises the possibility that these materials could also face export restrictions in the near future.

Nickel Prices Surge on LME and SHFE Following the Announcement

Following the announcement, nickel prices on the London Metal Exchange (LME) saw a significant jump, surpassing USD 16,100 per metric ton (MT). Similarly, nickel contracts NI2409 and NI2410 on the Shanghai Futures Exchange (SHFE) experienced an increase of more than 2.8%.

Impact on LME Stocks in the Event of a Russian Export Ban

While Western customers may argue that Russian nickel is already limited in trade due to sanctions, it is important to note that Russian-origin nickel currently constitutes 20% of LME stocks. An export ban could lead to a sharp but necessary reduction in these artificially high stock levels, forcing Western markets to rely more heavily on alternative sources.

China: Aluminum and Copper Destocking Accelerates

Analysts report that China has entered a destocking phase for aluminum, driven in part by rising demand from the automotive and renewable energy sectors. International demand for aluminum has also increased due to material shortages in various regions.

Copper Stocks in China Drop by Over 15%

Copper inventories in China have declined for ten consecutive weeks, reaching their lowest levels since the Chinese New Year. In the past two weeks alone, copper stocks in major Chinese regions have fallen by over 15%. This downward trend is expected to continue, as copper demand remains a key global economic indicator.