Nickel extends weakness on global cues; low demand

May, June contracts shed as much as 1.3% on lower offtake from alloy makers

Nickel extended weakness amid a weak trend in global markets and subdued demand at domestic spot markets, with prices falling by another 1.34 per cent to Rs 1,150.70 per kg in futures trade today as speculators engaged in trimming positions.

At the Multi Commodity Exchange, nickel for delivery in May traded Rs 15.60, or 1.34 per cent, to Rs 1,150.10 per kg in a business turnover of 2,030 lots.

June nickel shed Rs 15.50, or 1.32 per cent, to Rs 1,155 per kg in 142 lots.

Analysts said the persistent fall in nickel prices at futures trade was largely in tandem with a weakening trend in the global markets where it dropped for the second day on speculation that this year's rally in prices may slow demand amid rising inventories.

In addition, a fall in demand from alloy-makers in the domestic spot markets has put pressure, they said.

Globally, nickel tumbled as much as 2.1 per cent on the London Metal Exchange to $19,433 per tonne for three-month futures contract.