Nickel futures hits upper circuit, surges 4 per cent on global cues

NEW DELHI: Taking positive cues from the global market and strong spot demand, nickel continued its winning streak with prices rising 4 per cent to hit upper circuit at RS 1,214.20 per kg in futures trade today as participants indulged in creating positions.

At the Multi Commodity Exchange, nickel for delivery in May traded Rs 47, or 4.03 per cent to hit upper side limit at Rs 1,214.20 per kg in a business volume of 4,415 lots.

The metal for delivery in June month contracts too maintained its rising trend and prices went up by Rs 46, or 3.92 per cent to Rs 1,219.40 per kg in a turnover of 379 lots.

Markets analysts said besides increased domestic demand from alloy-makers, rally in metal where it reached to a two-year high at the London Metal Exchange ( LME) after Vale SA suspended activity in New Caledonia, stoking concern supply might fall short of reviving demand, influenced nickel prices at futures trade here.

Globally, nickel for delivery in three months at the LME gained 4.5 per cent to USD 19,487 per tonne after touching USD 19,786, the highest level since March 2 2012.

Meanwhile, nickel surged 41 per cent in London trading this year so far after leading global miner Indonesia barred exports of raw ores in January.