Nickel futures down on global cues, muted spot demand

At the MCX, nickel for delivery this month shed Rs 9.50 or 1.34% to Rs 697.10 per kg in a biz turnover of 2,451 lots

Nickel futures traded 1.34 per cent down at Rs 697.10 per kg on Thursday as speculators reduced their exposure, tracking a weak trend in base metals at the London Metal Exchange (LME) amid muted demand at the domestic spot markets.

At the Multi Commodity Exchange, nickel for delivery this month shed Rs 9.50 or 1.34 per cent to Rs 697.10 per kg in a business turnover of 2,451 lots.

The metal for delivery in November too fell by Rs 8.90 or 1.25 per cent to trade at Rs 703 per kg in 114 lots.

Market analysts said the fall in nickel prices was mostly in tune with a weak trend in the base metals pack at the LME as an unexpected drop in Chinese exports spurred concern about the outlook for the global economy.

China's exports plummeted 10.0 percent year-on-year to $184.5 billion in September, government data showed on Thursday.

Besides, muted demand from alloy-makers at the domestic spot markets weighed on metal prices in futures trade here.

Globally, nickel prices retreated by 1.6 per cent at the LME, reversing earlier gains.