It is reported that Nickel climbed in London as withdrawals from stockpiles signaled demand may be strengthening. Nickel for delivery in three months rose USD 300 or 1.5% to USD 20,700 a tonne.

According to the London Metal Exchange's daily inventory report, stockpiles of nickel dropped by 2.1%, the biggest decline since February 1st 2007.

Mr Stephen Hardcastle of UK Sucden Ltd said that a European stainless steel production may be improving, indicating more demand.

Mr Randy North a metals trader at RBC Capital Markets in London said that “The only evidence we see of a rebound is steady outflows of LME stocks. Our contacts in the physical markets tell us that consumer activity is healthy. However, material is easy to come by.''