Nickel drops by 0.3% on global cues

Nickel future prices today dropped 0.30% to Rs 918.50 per kg as speculators reduced their exposures amid a weak trend overseas.

At the Multi Commodity Exchange, nickel prices for delivery in November dropped by Rs 3.30, or 0.30%, to Rs 921.80 per kg in a business turnover of 87 lots.

Metal prices for delivery in October fell by Rs 2.30, or 0.25%, to trade at Rs 913.50 per kg in a turnover of 464 lots.

Market analysts said besides subdued demand from alloy-makers in the domestic spot market, a weak trend in base metals overseas on concern that demand will remain weak in China, the world's biggest consumer of industrial metals, weighed on nickel futures here.

Besides, London Metal Exchange (LME) stockpiles for the metal increasing to a record, too put pressure, they said.

Globally, nickel at the LME fell 0.5% to $14,933 per tonne after closing at $15,010 on October 24, the lowest since March 3.

The metal had slid 4.4% last week and dropped for seventh straight weeks, the longest run of weekly losses since 2001.