Volume traded on the London Metal Exchange has rocketed since the United States Treasury sanctioned and froze the assets of Oleg Deripaska and UC Rusal.
The US sanctioned and frozen the assets that are subject to US jurisdiction on Friday April 6, prompting bullish sentiment and expectations of tightness in the US aluminium market. Some 29,823 lots of aluminium had traded on the LME as of 3pm London time, the highest since August 8, 2017. The announcement similarly boosted volumes on Friday - just 4,106 lots had traded at midday, soaring to 19,388 lots at the end of trading. "Volumes have gone absolutely nuts. There was over 15,000 lots traded before the first LME Rings even begun, that is extraordinary," a Europe-based trader said. "We do not know the exact implications...