Embattled London Metal Exchange Is Headed for Another Fight (1)

The London Metal Exchange has faced a firestorm of criticism this year, and it’s about to get even worse.

The 145-year-old bourse is already taking heat from regulators and being sued by hedge funds and proprietary traders over its handling of a massive short squeeze in nickel in March. Now it’s lurching toward yet another clash — this time over whether to ban Russian supplies, in a debate that is polarizing the metals world.

A survey of traders in the aluminum market carried out by Bloomberg suggests that the sector is split. While many consumers are averse to taking Russian …