Global metal markets react as Putin threatens to restrict Russian exports
Global nickel, titanium and uranium producers have received a boost with media reports out of Moscow suggesting Russian president Vladimir Putin is threatening to restrict exports of the critical metals, with the nation a top producer of all three.
In comments made on local television, the president also suggested the country may consider restrictions on other commodities including natural gas, diamonds and gold—each of which the country also produces in large quantities.
However, he also noted any measures would only be taken if they do not cause damage to Russia itself.
Top three producer
Russia produced 218,700 metric tons of mined nickel and 149,300mt of refined nickel in 2022, according to the US government, ranking third largest globally for each behind Indonesia and the Philippines in mining and China and Japan in refining.
Russia’s nickel reserves are estimated at 7.5 million mt, the fourth largest in the world.
Russia’s VSMPO-AVISMA is the world’s largest titanium producer with approximately 25% of the global market, while the World Nuclear Association lists Russia as the sixth-largest producer of uranium in the world.
US restrictions
US president Joe Biden signed an act earlier this year banning the import of almost all Russian uranium products into the country from August 2024.
The prohibition was enacted to support America’s ongoing effort to reduce and ultimately eliminate its dependence on Russian uranium for civil nuclear power reactors.
The new law also released billions of dollars in appropriated funds to the US Department of Energy to be reinvested in domestic uranium enrichment, further advancing a secure and resilient global nuclear energy fuel supply consistent with the country’s international obligations.
LME metals ban
Russian metals have not been permitted to be traded on the London Metals Exchange (LME) since April due to British and US sanctions.
Given that almost two-thirds of the copper and 36% of the nickel contained in LME warehouses originate from the Russian Federation, the ban is having a significant effect on the market.
Three-month nickel surged 2.6% on the LME shortly after Putin’s remarks, while Canadian uranium stocks also closed higher.