Russian copper reserves in Europe are exported to China

International traders are buying Russian copper from London Stock Exchange (LME) warehouses in Europe to export to China. Due to Donald Trump's threats, metal prices in China has grown and supplies from Europe have become profitable.

"Glencorec buys Russian copper on the London Metal Exchange and plans to supply it to China, which highlights the metal shortage in the world's largest consumer of copper,"Bloomberg writes, citing sources.

According to him, over the past three trading sessions, the exchange has received requests for the supply of about 15 thousand tons of copper from LME warehouses in Rotterdam. This led to a reduction in exchange stocks to the lowest level in a year.

After the start of SMO, many companies began to avoid purchasing Russian copper, and it accumulated in warehouses in Europe, from where it is expensive to transport metal to China.

"Glencore's deals are most likely a response to tough market conditions prevailing in China after Donald Trump's threats to impose duties on copper imports led to the redirection of huge volumes of metal to the United States. This prompted traders to buy copper on the LME for supplies to the Chinese market," the agency continues.

The Chinese premium on some grades of copper rose to the highest level in the last five years, and urgent deliveries turned out to be more expensive than transactions at a later time.

Bloomberg noted that Glencore could also benefit from any step to ease sanctions against Russia in the event of a peace agreement with Ukraine.

"Since 2022, Glencore has distanced itself from Russia, stating that it will not enter "into any new trading business for goods of Russian origin, unless there are changes at the level of government agencies." Nevertheless, like others, the trader continued to buy and sell Russian metal on the LME," the agency added.