Key nonferrous metals such as nickel, copper, and aluminum saw a reversal in gains in London trading due to sanctions on Russia being less severe than expected. The sanctions, announced by the US, EU, and UK, are not anticipated to majorly impact Russian metals flows, though they could affect the financing of Russian metals and steel trade. Analysts from Commerzbank, ED&F Man Capital Markets, and SP Angel provided insights on the situation, noting that while direct impacts on the aluminum and nickel industries are unlikely, the risk of supply outages remains due to potential Russian export restrictions and low inventory levels. The gold price also fell from a 17-month high as sanctions were not as harsh as expected.

Key non-ferrous metals prices, including nickel, copper, and aluminum, rose around 5% in early London trading on February 24 due to concerns over supply curtailment following Russia's invasion of Ukraine. Russia, a major producer of these metals, faces potential trade sanctions that could tighten global markets. The European Commission, led by President Ursula von der Leyen, plans to introduce a package of targeted sanctions. Market volatility is expected to continue as the situation develops, with gold and palladium prices also surging as investors seek safe-haven assets.