The most-traded July copper contract on the Shanghai Futures Exchange climbed 0.9 percent to 44,240 yuan ($7,134) a tonne on Thursday. The ShFE will be closed on Friday. Buyers rushed into the contract on pent up supply worries, forcing a flurry of short-covering ahead of a long weekend. "Today's rise in nickel was mostly due to fresh longs," said Jin Yidan, an analyst at Minmetals JingYi Futures.
"Long holders were trying to push up prices at the time when many players have already gone for the long-weekend holiday in China. Many people think nickel prices (in China) have bottomed as the economy is expected to improve from now on." Traders also said nickel shorts on the Shanghai bourse have been forced to buy back their positions because delivery is not yet an option on the front month July futures contract minted late last month. Reflecting still slowly recovering physical demand, China nickel premiums including cost, insurance and freight eased $10 to $155 this week.
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