Glencore actively withdraws Russian copper from LME warehouses to deliver to China

The London Metal Exchange (LME) has reported a record drawdown of Russian copper, marking the steepest decline since it began publishing data in 2023. According to Bloomberg, the drop comes as Glencore ramps up purchases for shipments to China.

In May, LME stocks of Russian copper plummeted by 27,350 tons, including 14,800 tons of metal that UK companies and citizens are now barred from purchasing under British sanctions. Glencore emerged as the primary buyer channeling purchases through a Swiss entity to supply Chinese clients despite its London-listed parent company, Bloomberg reports.

The news agency’s analysts say this deal highlights growing tensions in the copper market. LME stockpiles of the metal have dwindled to their lowest level in two years. And while demand for Russian copper has dropped significantly since 2022, its heavy exports continue, pointing to a shortage of alternative supply sources.