Nickel plunges over 6 pc in futures trade

NEW DELHI: Nickel futures traded 6.31 per cent down at Rs 857 per kg today amid a weak trend in global markets and sluggish spot demand.

At the Multi Commodity Exchange, nickel for delivery in September fell sharply by Rs 57.70, or 6.31 per cent, to Rs 857 per kg, with a business turnover of 17,423 lots.

The metal for delivery in October lost Rs 58, or 6.28 per cent, to Rs 865.30 per kg, with a trade volume of 2,581 lots.

Market analysts attributed the steep fall in nickel futures prices to a weak trend in entire base metals at the London Metal Exchange on fears that a failure to contain Eurozone's sovereign debt crisis may reduce demand for the industrial metals.

In addition, sluggish spot demand from alloy-makers also had a negative impact on the prices, they added.

Nickel was trading 3.4 per cent down at USD 17,650 a tonne at the London Metal Exchange in early trade today.