LONDON, March 7 (Reuters) - The London Metal Exchange (LME) said on Monday it was closely monitoring nickel and other metals after prices surged as Western sanctions against Russia disrupted supply from the major producer.
Benchmark three-month prices for LME nickel, which is used to make stainless steel and batteries for electric vehicles, surged about 60% on Monday to $46,850 a tonne, and have now nearly doubled since Russia invaded Ukraine on Feb. 24.
“We note the large price move in nickel over the weekend and are monitoring all metals closely to ensure market activity remains orderly," the LME said in a statement.
"We have further options available to ensure continued market orderliness if these are required.”
The LME gave no indication of what action it could take or whether it might be similar to previous action.
The exchange amended lending rules and implemented a backwardation limit when low stocks caused tightness in copper spreads last year.
It also suspended from its list of approved brands aluminium produced by Russia's Rusal in 2018 after the company was sanctioned by the United States.
Russia produces about 6% of the world's aluminium, 10% of global mined nickel and 3.5% of world copper supply.
Russia calls the campaign it launched on Feb. 24 a "special military operation", saying it has no plans to occupy Ukraine.
The LME, the world's oldest and largest market for industrial metals, has not had to suspend any of its brands due to Western sanctions against Russia, but the exchange said it was ready to take action if necessary.
Prices have also been supported by low inventories in LME-registered warehouse, which the LME said in January it was also monitoring.
(Reporting by Zandi Shabalala; editing by Pratima Desai and Susan Fenton)
