Largo Inc T.LGO

Topical: EU to ban steel / iron import from Russia

[kha341]

 

"As a first step, the EU will prohibit imports of iron and steel sector goods".

https://www.reuters.com/markets/europe/eu-unveils-fourth-set-sanctions-against-russia-2022-03-11/

[NewAgeMetal]

Wow. so how does this impact Russian mills outside of Russia?

[kha341]

Outside of Russia? A very good question indeed. My guess would be “business as usual” as the ban is about "import from Russia". For instance, regarding the Evraz steel mill in Regina: Premier Scott Moe said he doesn’t have concerns about possible impacts to operations at the steel mill in Regina because it is disconnected from global and European operations. “I have full confidence

[NewAgeMetal]

Just heard on CBC confirming what you wrote, Treadeau states, Canadian workers in will not be effected. 

[kha341]

However, all monetary transfers from the subsidiaries (located outside of Russia) to the parent companies in Russia or to the Russian oligarchs owners (who are on the sanction list) would be banned, imo.

[NewAgeMetal]

So how much vanadium was coming from slag inside Russia? Do we know that? I guess what I'm really curious about is whether the increase in the price of vanadium in short term based on panic/fear or medium/long term based on a shortfall in supply. I don't see these sanctions coming off any time soon even if Putin reversed course, there would be a county to rebuild/reparation to be paid.

[Clipper2]

Hi NewAgeMetal My understanding is that Russia was producing 17% of the world supply. GL

[Clipper2]

I was unable to recall where I obtained that info. from, but after some research I found a link. Russia is the world’s second-largest producer of vanadium used to make steel. It accounts for 17% of global vanadium supplies at 110,000 tonnes last year, according to the U.S. Geological Survey (USGS). https://www.fxempire.com/news/article/metal-traders-group-urges-germany-to-stockpile-cobalt-cut

[NewAgeMetal]

Thanks, that's a very significant amount.  Although I suppose if China takes it still, the vanadium hasn't actually left the market.

[kha341]

If so then China has not done it yet. The V prices keep rising in China.

[Drhoho]

Clipper, the last sentence of your posting was significant, in that it laid out that vanadium and palladium are not covered like other industrial metals, ie copper, aluminum, zinc, nickel, and lead, on international metal exchanges. LGO establishing Largo Physical Vanadium  (LPV) appears to me to be Alberto Arias' game plan to put vanadium on the same or similar footing as those other

[kha341]

FYI

[kha341]

[Drhoho]

Kha, I see your enclosure that includes palladium as an exchange covered industrial metal. In my post, I was quoting the 3 March Reuters article linked my Clipper with VDM President Petra Zieringer stating that palladium, along with vanadium, "cannot be covered by international metal exchanges." 

[Drhoho]

VDM: Association of German Metal Traders.

[kha341]

Palladium is also traded on the New York Mercantile Exchange (NYMEX) which is the world's largest physical commodity futures exchange. Btw, Palladium is one of the 8 precious metals (gold (Au), silver (Ag), platinum (Pt), iridium (Ir), palladium (Pd), rhodium (Rh), ruthenium (Ru), and osmium (Os))

[Drhoho]

Kha, maybe Petra mistakenly was viewing Palladium as not being a covered metal in the industrial metal category listing (true), rather than in its proper position in the precious metal category.(true) as you pointed out.

[kha341]

So Petra Zieringer did not even know that Palladium is a precious metal and she is the President of Verband Deutscher Metallhndler e.V. representing the interests of the non-ferrous metal wholesale and the non-ferrous metal recycling industry? Anyway it's not important. I wrote the following recently, thus my surprise when I read her statement from Clipper’s link. So I double checked to be