logo
Exclusive: Commodity traders Gunvor, Vitol queue to stock up on Russian aluminium from LME storage, sources say

Exclusive: Commodity traders Gunvor, Vitol queue to stock up on Russian aluminium from LME storage, sources say

Reuters31-03-2025
LONDON, March 31 (Reuters) - Major commodity traders Gunvor and Vitol are waiting to withdraw large volumes of Russian-produced aluminium from London Metal Exchange-approved warehouses in the South Korean port of Gwangyang, three sources familiar with the matter said.
Gunvor and Vitol mostly focus on energy, but oil and gas trading giants more broadly have made significant moves into metals markets to explore opportunities offered by the global clean energy transition.
It is not known why Gunvor or Vitol want the aluminium in LME warehouses in Gwangyang, where the lion's share of metal is mostly of Russian origin - deposited after Russia invaded Ukraine in 2022 as consumers shunned the metal.
Vitol and Gunvor declined to comment.
LME data shows metal earmarked to leave warehouses in Gwangyang run by ISTIM - a major operator of LME depositories in the port - at 97,750 metric tons at end-February, worth more than $250 million. Queuing time to take delivery was 81 calendar days, or more than 11 weeks, the data showed.
Queues typically only form when large amounts of metal warrants, title documents conferring ownership, are cancelled in a short period of time.
The sources said Vitol has already taken delivery of some aluminium from LME warehouses in Gwangyang. Gunvor has not yet taken any, other sources said.
In late December, 84,000 tons of aluminium stored in LME warehouses in Gwangyang was cancelled, according to LME data, which also shows another 21,150 was cancelled in January and February.
A small proportion was loaded out in January, while in February, 33,200 tons was removed and 26,800 tons of aluminium has been removed from LME warehouses in Gwangyang so far in March.
Cancelled warrants at 30% of Gwangyang's total stocks of 123,325 tons on March 28 suggest another 37,125 tons of aluminium is due to leave the LME system.
Russian President Vladimir Putin in February offered the U.S. the opportunity for joint exploration of the country's rare earth metals deposits, as well as the supply of aluminium to the U.S. domestic market, under a future economic deal.
Putin said Russian companies could supply up to two million metric tons annually of the metal used in the transport, construction and packaging industries.
Industry sources say major destinations for Russian-origin aluminium are China and Turkey, where users accept sanctioned metal produced in Russia.
The U.S. Treasury Department and the British government in April last year banned the 148-year-old LME and the Chicago Mercantile Exchange (CME) from holding Russian aluminium, copper and nickel produced from April 13.
Aluminium in Russia is produced by Rusal, which last year supplied nearly four million tons or more than 5% of the global total estimated at around 74 million tons.
Aluminium prices on the LME held up for a few weeks after Donald Trump became U.S. president, but have dropped 7% since March 12 to around $2,540 a metric ton on concern about U.S. tariffs and a global trade war.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Oil prices gain on Russian gasoline ban, US trade optimism, crude inventories
Oil prices gain on Russian gasoline ban, US trade optimism, crude inventories

Reuters

time2 hours ago

  • Reuters

Oil prices gain on Russian gasoline ban, US trade optimism, crude inventories

HOUSTON, July 24 (Reuters) - Oil prices rose on Thursday, lifted by expected cuts in Russian gasoline supply and optimism over U.S. trade negotiations that would ease pressure on the global economy, with a further boost from a sharper-than-expected decline in U.S. crude inventories. Brent crude futures had gained 80 cents, or 1.17%, to $69.31 a barrel by 10:52 a.m. CDT (1552 GMT). U.S. West Texas Intermediate crude futures climbed 97 cents, or 1.49% to $66.22 per barrel. "Russia looking to cut off gasoline exports gave the market a boost," said Phil Flynn, senior analyst with Price Futures Group. "The market was looking for a reason to go higher." Three industry sources told Reuters that Russia was considering a tighter export ban as early as Monday that would include fuel producers. The restrictions will exclude supplies to the Moscow-led Eurasian Economic Union, a group of five former Soviet states, and to countries such as Mongolia with which Russia has intergovernmental agreements on fuel supplies, the sources said. Early in the session, futures rose on the previous day's report of a U.S. crude inventory draw and on hopes for a trade deal between the U.S. and the European Union that would lower tariffs. "The U.S. crude inventory draw and the trade efforts are adding some support to prices," said Janiv Shah, an analyst at Rystad. On Wednesday, two European diplomats said the EU and the U.S. were moving toward a trade deal that could include a 15% U.S. baseline tariff on EU imports and possible exemptions. This could pave the way for another major trade agreement following the Japan deal. Also on Wednesday, U.S. Energy Information Administration data showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. Oil prices were also supported by a suspension of Azeri crude exports from the Turkish port of Ceyhan and a brief halt to loadings at Russia's main Black Sea ports which has since been resolved. BP (BP.L), opens new tab said organic chlorides were detected in some of the oil tanks in the terminal at Ceyhan, adding that oil loading continued from some of the tanks with chloride levels assessed to be within normal specifications, while export activities via the BTC pipeline also continued. Traders will watch for further news on loadings from Ceyhan and Novorossiysk, which together make up around 2.5% of global oil supply at 2.5 million barrels per day, according to Reuters calculations based on loading data from the region. Analysts expect limits to further oil price gains. "Uncertainty over U.S.-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities, predicting WTI would likely remain range-bound between $60 and $70 a barrel. Russia and Ukraine held peace talks in Istanbul on Wednesday, discussing further prisoner swaps, though the two sides remain far apart on ceasefire terms and a possible meeting of their leaders. "Next to watch would be the demand indicators as we are in the peak season and any upside or downside would impact refining margins," Rystad's Shah added.

Vietnam to buy two Lockheed Martin helicopters, sources say, as US trade talks carry on
Vietnam to buy two Lockheed Martin helicopters, sources say, as US trade talks carry on

Reuters

time5 hours ago

  • Reuters

Vietnam to buy two Lockheed Martin helicopters, sources say, as US trade talks carry on

HANOI, July 24 (Reuters) - Vietnam's police ministry has agreed to buy two Lockheed Martin helicopters, according to three people with knowledge of the talks, in what would be a key security deal since Washington lifted an arms embargo on the Communist-run nation a decade ago. The deal would come after the country's ministry of public security held protracted talks since at least 2022 with multiple U.S. defence companies to acquire helicopters. Lockheed Martin (LMT.N), opens new tab is also negotiating with Vietnam's defence ministry the sale of C-130 military transport planes, multiple officials have said. The Southeast Asian country, which relies heavily on Russian weapons, has been looking for years to diversify its arsenal. It is also currently negotiating with the Trump administration key elements of a tariff deal that is crucial to maintain access to its largest export market. Vietnamese pilots have already been training with Lockheed Martin's Sikorsky helicopters, one of the sources with direct knowledge said, noting the deal was worth more than $100 million and could include more choppers at a later stage. The source did not specify the chopper model under discussion but said pilots were training with S-92 helicopters, which are employed in several countries for both civilian and military uses. Another two sources briefed on the talks confirmed Vietnam had agreed to buy two Lockheed Martin helicopters but gave no information about the cost and the model. All sources declined to be named because the information was not public. Reuters could not establish when the deal could be completed and whether there were contractual aspects to be defined. Since an arms embargo on Vietnam was lifted in 2016, U.S. security deals with its former foe have been limited to coastguard ships and trainer aircraft, which could lead to the procurement of military planes. Lockheed Martin said queries on procurement should be directed to the Vietnamese government. Calls to Vietnam's ministry of public security went unanswered. The foreign ministry did not reply to a request for comment. Vietnam's parliament approved in June 2022 the establishment of a mobile police unit to tackle crime, terrorism and riots, which would need helicopters to operate, according to the government and the text of the 2022 legislation. U.S. officials have said Washington sees Vietnam as a key player on regional security and would be willing to boost Vietnam's defence, especially in the South China Sea, where it is often at odds with China over disputed boundaries. Support for the police could be more controversial. The latest U.S. State Department's report on human rights in Vietnam, released in 2023, warned of significant violations and abuses by security forces. Vietnam's foreign ministry has said the report was biased and inaccurate. The sources did not explicitly link the possible procurement deal to tariff talks, but Vietnamese and U.S. officials have repeatedly said purchases of U.S. military equipment would strengthen Hanoi's position in negotiating a fully-fledged trade agreement. U.S. President Donald Trump announced earlier in July a deal on 20% tariffs for Vietnamese goods imported into the United States, 40% levies on transshipped products and no duties for U.S. exports to Vietnam. However, Hanoi has instead talked of a preliminary framework agreement. Talks are still underway to finalise the agreement.

Tottenham considering £15m transfer offer from LAFC for captain Son Heung-min – but he won't leave before tour
Tottenham considering £15m transfer offer from LAFC for captain Son Heung-min – but he won't leave before tour

Scottish Sun

time5 hours ago

  • Scottish Sun

Tottenham considering £15m transfer offer from LAFC for captain Son Heung-min – but he won't leave before tour

Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) TOTTENHAM are considering a £15million offer for captain Son Heung-min. The South Korea star's future in North London is in doubt with him being a target for LAFC. Sign up for Scottish Sun newsletter Sign up 10 Tottenham could sell Son Heung-min this summer Credit: Alamy 10 LAFC are interested in signing the Spurs captain Credit: Reuters 10 He has been in North London since 2015 Credit: Reuters 10 He was a £22m signing from Bayer Leverkusen in 2015 Credit: PA:Empics Sport Spurs have already been active in the transfer market for new manager Thomas Frank. The club have brought in West Ham attacker Mohammed Kudus and are interested in Nottingham Forest star Morgan Gibbs-White. Son, 33, could head for the exit door as SunSport understands Spurs would accept an offer between £15m and £20m. A potential switch to the MLS would still rely on the Europa League winner agreeing to the move. READ MORE ON SPORTS VIKTOR BLOCK-ERES Arsenal transfer for Gyokeres 'hijacked twice' as Sporting took offers The former Bayer Leverkusen ace could instead decide to stay and fight for his spot at N17. Son is involved in the discussions over the transfer with all parties. However, a move will not be immediate as Son is likely to stay at Spurs for their fixtures during the pre-season tour of Asia. Last season's 17th-placed Premier League finishers face Newcastle in Seoul, South Korea on August 3. SUN VEGAS WELCOME OFFER: GET £50 BONUS WHEN YOU JOIN This match follows on from the North London derby against Arsenal in Hong Kong. If Spurs were to sell Son before facing the Toon, they would then forfeit up to 75 per cent of the fee they would receive for playing. Son Heung-min hit in head by TROPHY as Tottenham celebrate Europa League victory over Man Utd Son is down as a "key player" in the contract for the touring Premier League side. If he were to travel with the squad but not play, then Spurs would be docked half their fee. The South Korean international is hugely popular in his homeland and wider Asia. Last season, Son scored seven times and assisted nine goals in 30 Premier League appearances. 10 10 Son did lift the Europa League last term Credit: Getty 10 Frank does not want to push Son out the door Credit: Getty Despite the club's shocking performance domestically, Son did become the first captain to lift a trophy since Ledley King in 2008. Frank has spoken about Son's future and appears to be happy if he decides to stay. He said: "Right now, I have a player who is fully committed and training well. "If a player has been at a club a long time, then there will always be a decision for the club to take." As well as Kudus, Spurs have already signed Japanese ace Kato Takai and made Mathys Tel's loan from Bayern Munich permanent. The club has also welcomed young defender Luka Vuskovic from Hajduk Split. Their pursuit of Gibbs-White is at a standstill despite triggering his £60m release clause. Forest have halted the transfer after claiming the approach from Spurs was "illegal". 10 Spurs have already added Mohammed Kudus this summer Credit: Getty 10 Morgan Gibbs-White was also a target for the North London club Credit: Getty 10 TRANSFER NEWS LIVE - KEEP UP WITH ALL THE LATEST FROM A BUSY SUMMER WINDOW

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store