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Alcoa Urges LME Not to Accept Russian Metal to Avert ‘Crisis’

  • Company letter to bourse comes amid hot debate among traders
  • Concern that a wave of Russian deliveries could depress prices

Alcoa Corp., the largest US aluminum producer, told the London Metal Exchange that Russian metal shouldn’t be traded on the benchmark industrial metals bourse, according to people familiar with the matter.

The company’s Chief Commercial Officer Kelly Thomas wrote in a letter to the LME that the exchange shouldn’t be used as a market of last resort for Russian metal, said the people, who asked not to be named because the information isn’t public. The letter urged the LME to take action to “avert an impending crisis.” Some market participants are concerned that a wave of Russian metal could be delivered to the LME, depressing the price that is used as a global benchmark.