The United States announced additional tariffs on February 24, 2023, including:
1. Impose a 200% tariff on certain aluminum products and aluminum derivatives originating in Russia and manufactured in third countries;
2. Non-most-favored-nation tariffs of up to 70 per cent on selected aluminium products of Russian origin as well as other metals (including copper, lead and nickel).
The LME announced an immediate suspension of new warehouse registrations for Russian primary aluminium, copper, lead, nickel or aluminium alloys (in the form of NASAAC) at LME warehouses in the United States.
It should be noted that currently LME does not have a receipt for Russian primary aluminum, copper, lead and nickel registered in the US warehouse, but it does have a receipt for 400 tons of Russian NASAAC. As a result, the LME will suspend the use of the Russian NASAAC warehouse receipt to settle the LME NASAAC futures contract. Based on current data, there is no open interest in NASAAC on the LME, so we expect no demand for physical delivery.
For the avoidance of doubt, this notice is limited to US warehouses and warehouse receipt business outside the US is not affected.
In case of any doubt, please refer to the English version of Notice published by LME: Notice 23/034
