Russian-origin aluminium accounted for 99.98 per cent of available aluminium stocks in London Metal Exchange (LME) warehouses at the end of September, up from 95 per cent in August, as Indian metal stocks dwindled to just 50 tonnes. The figures, released by the exchange on Wednesday, highlight the limited choice of aluminium available for delivery through the LME warehouse system.
Total available, or on-warrant, aluminium inventories fell by 6.5 per cent to 226,675 tonnes at the end of September, marking their lowest level since March 2025. The decline came as the conflict in the Middle East tightened global supply. Although available Russian aluminium stocks also decreased, falling by 3,425 tonnes during the month to 226,625 tonnes, their share of the remaining inventory increased as stocks of Indian-origin metal contracted more sharply.
Indian aluminium stocks, the only other origin available in LME warehouses, dropped by 12,400 tonnes to just 50 tonnes in September. This left Russian-origin material accounting for virtually all available aluminium held in the exchange's warehouses.
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Low stocks and limited demand for Russian metal
Despite its overwhelming share of available LME aluminium inventories, Russian metal remains unpopular among many traders. Aluminium produced in Russia before April 13, 2024, remains eligible for trading, while metal produced after that date was barred from the LME warehousing system to comply with Western sanctions.
The reluctance to take Russian material has also raised questions about how quickly available stocks can recover. StoneX senior metals analyst Natalie Scott-Gray addressed the situation during a webinar on Wednesday, pointing to limited interest in the metal held in warehouses.
"We've got to a place where I think the market has accepted that the (aluminium) stocks are where they are at this very low level and the quantity that is in there isn't really wanted," StoneX senior metals analyst Natalie Scott-Gray said on a webinar on Wednesday.
"It's going to take time for these stocks actually to start to increase. If we look at even the queues for materials or cancelled warrants, there's not a lot of orders for it."
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