Nickel futures drop on sluggish demand, global cues

NEW DELHI: Nickel prices dropped 0.83 per cent to Rs 875 per kg in futures trade today as speculators reduced their holdings on sluggish demand from alloy-maker in the spot market and a weak trend overseas.

At the Multi Commodity Exchange, nickel for delivery in February dropped by Rs 7.30, or 0.83 per cent to Rs 875 per kg in a business turnover of 196 lots.

Similarly, metal for delivery in March lost Rs 6.30, or 0.71 per cent, to Rs 883.20 per kg in six lots.

Analysts said speculators reduced positions due to sluggish demand from alloy-makers in the spot market amid a weak global trend after manufacturing slowed in China, the world's largest user of base metals, mainly pulled down nickel prices at futures trade.