http://www.forbes.com/reuters/feeds/...

"Nickel rose 6.7 percent to touch an intraday high of $23,420 before ending at $23,390, up $1,440, with possible production losses prompting a short covering rally.

Australian miners Minara Resources Ltd and Newcrest Mining Ltd said a gas outage after last week's explosion at a supplier's plant will impact their full-year production forecasts.

Stocks in LME warehouses are down by almost 10 percent since the start of May, but at the same time stainless steel demand -- 70 percent of nickel's offtake goes to this market -- has eased.

"While the ongoing trend of LME stock outflows and reduced output at Murrin Murrin are supportive, nickel prices remain weighed by a market surplus ... and subdued stainless steel demand," analyst Michael Jansen at JP Morgan said in a report."