Nickel futures drop on sluggish demand, global cues

NEW DELHI: Nickel prices dropped 0.39 per cent to Rs 850.60 per kg in futures trade today after participants trimmed holdings tracking a weak trend overseas amid sluggish demand from alloy-makers in the spot market.

At the Multi Commodity Exchange, nickel for delivery in January next year dropped by Rs 3.30, or 0.39 per cent, to Rs 850.60 per kg in a business turnover of 19 lots.

The metal for delivery in current month shed Rs 2.70, or 0.32 per cent, to Rs 842 per kg in 48 lots.

Market analysts said speculators reduced their positions due to sluggish demand from alloy-makers in the spot market amid a weak global trend as improving US economy fuelled speculation the Federal Reserve may start trimming its stimulus sooner than expected, mainly led to decline in nickel prices at futures trade.