Nickel prices rose in Shanghai by over 3% on Thursday to a three-week high amid concerns about potential US sanctions on Russia that could hurt supplies.

Nickel March futures at the Shanghai Futures Exchange closed 3.2% higher at 131,320 yuan per tonne, scaling January 29 highs.

Nickel three-month futures at the London Metals Exchange rose to $16,990 a tonne, after a 3.6% surge in the previous session.

US President Joe Bidewn said that Washington is preparing a big batch of new sanctions against Moscow on Friday, in turn triggering speculation on metals exported by Russia.

Russia is the main producer for nickel and aluminum, with nickel mainly used in stainless steel manufacturing and new energy batteries.

Risk appetite also improved after China’s central bank announced the biggest cut ever for mortgage interest rates to underpin the market.

As for other metals, aluminum rose 0.6% to $2232, while copper added 0.6% to $8591, as zinc rose 0.8% to $2412, while lead rose 0.3% to $2083, while tin rose 0.4% to $26,395.

Dollar stabilized against main rivals ahead of important manufacturing and services data for major economies worldwide.

The dollar index stabilized at 104.04 as of 16:40 GMT, with a session-high at 104.1, and a low at 103.4.

Nickel spot prices rose 2.8% in American trade as of 16:51 GMT to $16.972 thousand a tonne.