Markets must adapt to lack of Russian, Ukrainian commodities, Glencore says

Global commodity markets will need to adapt to a lack of supply from Russia and Ukraine, global miner and commodities trader Glencore said in its annual report on Wednesday. "Over time, global commodity trade flows will need to adapt to some or all of Russian/Ukrainian supply being unavailable, whether due to infrastructure damage, sanctions or ethical concerns," Glencore said.

Global commodity markets will need to adapt to a lack of supply from Russia and Ukraine, global miner and commodities trader Glencore said in its annual report on Wednesday.

"Over time, global commodity trade flows will need to adapt to some or all of Russian/Ukrainian supply being unavailable, whether due to infrastructure damage, sanctions, or ethical concerns," Glencore said. Russia's invasion of Ukraine has caused havoc in commodity markets.

Russia is a key supplier of oil, natural gas, coal, aluminum, and nickel, while Ukraine is a major grain producer and exporter. Volatility in all these commodities has spiked, Glencore noted. Uncertainty over the supply of commodities may disrupt trade flows and push commodity prices and input costs up, Glencore said, causing issues for the availability of funding to ensure access to raw materials.

"Depending on the duration of the conflict and the sanctions regime, global commodity flows may change materially from their pre-2022 situation," Glencore said.