Glencore Drives Drawdown of Russian Copper Sanctioned by UK

(Bloomberg) — The London Metal Exchange has reported the biggest drawdown of Russian copper from its network of warehouses since it started reporting the data in 2023, as Glencore Plc bought metal to deliver to China.

Inventories of Russian copper on the LME dropped 27,350 tons in May, the exchange said on Tuesday. The drawdown included “type 2” Russian metal, which British companies and citizens are barred from buying under UK sanctions. 

Bloomberg reported last month that Glencore was buying Russian copper on the LME and making plans to deliver it to China. While Glencore’s parent company is listed in London, the firm’s copper desk operates from Switzerland and trades through a Swiss entity.

The trade highlights the tightness of the LME copper market, which has seen overall stocks drop to the lowest in nearly two years. Russian metal has been seen as the least desirable in the market since the full-scale invasion of Ukraine in 2022, with the withdrawals indicating the lack of alternative metal available.

A spokesperson for Glencore declined to comment.

Many consumers and financiers have sought to avoid Russian supplies since 2022, and in particular after partial sanctions imposed last year by the US and UK. As a result, Russian copper has piled up on the LME, particularly in Europe. 

The data showed that the drawdown in May included 14,800 tons of “type 2” Russian copper. That’s the first time there has been a net reduction in “type 2” Russian copper in the LME’s data since the sanctions were imposed last year. 

“Type 2” Russian copper is metal that was produced before April 13 2024, but placed on to LME warrant after that date, which is when the US and UK introduced new sanctions. It is a breach of those sanctions for UK companies or citizens to take delivery of “type 2” Russian metal, though US, European and Swiss entities face no comparable restriction.

The trade also shows how traders’ perception of the value of Russian inventories is changing, with some arguing that the possibility of a peace deal in Ukraine could trigger a sharp revaluation.

The LME has emerged as the tightest part of the copper market in recent weeks, as the Chinese market has weakened somewhat after a buying spree when prices plunged in April. Premiums for copper in China have dropped from their highs in April, while some Chinese smelters are making plans to export the metal.

The global market is being squeezed by President Donald Trump’s threat of tariffs on copper imports, which has prompted vast quantities of metal to be redirected to the US, draining stocks elsewhere.

©2025 Bloomberg L.P.