The London Metal Exchange (LME) has banned two of its approved UK warehouses from exporting Russian nickel on or after July 20.

The decision followed a 1 April resolution that banned other Russian metals, including copper, lead, primary aluminum and aluminum alloy, from entering British warehouses.

The exchange said no Russian nickel is currently stored in approved UK warehouses in Hull and Liverpool.

However, the LME noted that anyone receiving Russian nickel from the UK could face very high extra costs.

Russia supplies about 10 per cent of nickel, 6 per cent aluminum and about 3.5 per cent copper. A ban on Russian metals could lead to shortages and soaring new prices at a time of global inflation.

Nickel prices have been climbing since the start of the year due to strong demand and falling inventories. The Russian invasion of Ukraine on 24 February provided further impetus.

On March 8, chaotic trading triggered by cutting short positions by China Castle Peak Holdings and other companies soared to record highs of more than.