Glencore PLC (LSE:GLEN) reportedly delivered "significant amounts" of aluminium mined in Russia to a London Metal Exchange warehouse in South Korea.
The FTSE 100 commodity trader delivered an unstated amount of the metal originating from Russian producer Rusal, Reuters reporting, citing various sources.
It was noted that some aluminium buyers and end-users in various industries do not want Russian aluminium in their products, leading to 'unwanted' metal such as this ending up in the LME system as 'a market of last resort' for consumers and producers.
Swiss-based Glencore and the London Metal Exchange declined to comment, the report said.
In 2020, Glencore signed a US$16.3bn agreement with Rusal for 6.9mln tonnes of aluminium, of which around 1.6mln tonnes a year was due to be supplied between 2021 and 2024.
Prices of aluminium plunged last week on reports that Washington may impose restrictions on imports of Russian aluminum as the West mulls ways of stepping up sanctions in response to the ongoing invasion of Ukraine.
The chairman of Moscow-based EN+, which owns a 57% stake in Rusal, on Friday dismissed these reports as “irresponsible market speculation”, saying Rusal remained in full compliance with US regulations.
US-based aluminium producer Alcoa (NYSE:AA) last week said it is lobbying the White House to block Russia imports of the metal.