Nickel futures down Rs 5.20 per kg on overseas trends

NEW DELHI: Nickel prices dropped by Rs 5.20 to Rs 892.70 per kg in futures trade today in tandem with a weakening trend at the London Metal Exchange and sluggish demand from alloy-makers in the domestic spot market.

In futures trade at the Multi Commodity Exchange, nickel for delivery in May contracts fell by Rs 5.20, or 0.61 per cent, to Rs 892.70 per kg in a business turnover of 314 lots.

The metal for delivery in June also fell by Rs 5, or 0.55 per cent, to Rs 900 per kg in a turnover of 10 lots.

Analysts attributed fall in nickel prices at futures trade to a weakening trend in the base metals pack at the London Metal Exchange ( LME) as stockpiles climbed near a record and amid signs of cooling from China and the US, the world's biggest metals consumers.

Besides, subdued demand from alloy-makers at the domestic spot markets, weighed on metal prices, they said.

Globally, nickel for delivery in three months on the LME fell 1.1 per cent to USD 13,900 a tonne. Prices have dropped 31 per cent in the past 12 months, the second-most among the six main metals traded in London.