Nickel down 0.27% on overseas cues, low demand

Speculators pare exposures on lower offtake from alloy makers

Nickel prices fell by 0.27 per cent to Rs 1,014.70 per kg in futures trade today as speculators reduced their exposures amid a weak trend in base metals overseas.

Further, subdued demand at domestic spot markets from alloy-makers weighed on metal prices.

At the Multi Commodity Exchange, nickel for delivery in current month declined by Rs 2.70, or 0.27 per cent, to Rs 1,014.70 per kg in a business turnover of 267 lots.

September nickel shed Rs 2.80, or 0.27 per cent, to Rs 1,020.60 per kg in 29 lots.

Analysts said the fall in nickel prices in futures trade was largely in tandem with a weakening trend in base metals at the London Metal Exchange (LME) on rising inventories and a union ruled out a strike this year at Colombia's Cerro Matoso mine.

Low demand from domestic alloy-makers also put pressure on metal prices at futures trade, they said.

Meanwhile, nickel inventories monitored by the LME rose to a record for the eighth straight session, surging 52 per cent this year.