New Russian Sanctions Spark Metal Market Volatility

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Sanctions Nyheter

Russia,Copper,Russian Copper

Sanctions on Russian copper, aluminum, and nickel have caused market volatility, with potential impacts on pricing, open interest, and trade flows.

Via Metal Miner Copper prices continued their breakout during March, rising 4.25%. Prices then formed a second higher high on March 15, followed by a new higher low on March 27. The rally continued throughout April as prices climbed an additional 7.59%. As of April 15, they stand at their highest level since June 2022. Source MetalMiner Insights, Chart & Correlation Analysis Tool New Russian Sanctions Hit Copper, Aluminum, Nickel The UK and U.S.

inventories could see a boost as they continue to admit Russian metal no longer accepted by Western exchanges. As a result, the rising volume of discounted Russian metal could impact prices. Differing Contangos Between LME, CME Copper Prices As with all shocks, the market will require time to price in and adjust to the latest shift. This could translate into increased price volatility across exchanges as markets learn the full ramifications of how the sanctions will impact global price discovery and trade flows. The potential divergence of exchange prices remains the largest risk to markets and buyers, although it has yet to become meaningfully apparent.

 

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