Nickel futures extend weakness, down 0.57%

Extending its weakness largely in step with a weak global trend, nickel fell by another 0.57% to Rs 771.90 per kg in futures trade Wednesday as traders reduced their exposure.

Besides, subdued demand from alloy-makers and other consuming industries at the spot market, kept pressure on metal prices.

At Multi Commodity Exchange, nickel for delivery in August contracts fell by another Rs 4.40, or 0.57%, to Rs 771.90 per kg with a business turnover of 28 lots.

Also, the metal for delivery in July was trading lower by Rs 3.80, or 0.49%, to Rs 765 per kg in 907 lots.

Analysts said continued offloading of positions by speculators after data showed Chinese manufacturing remained sluggish as Greece's debt crisis deepened weighed on nickel prices in futures trade here.

Nickel for delivery in three months on the London Metal Exchange (LME) retreated 0.8% to $11,885 per tonne.

Globally, nickel has slumped 21% this year so far, the second-worst performer on LME, as China's slowing economic growth cooled demand.

Meanwhile, inventories monitored by LME surged to a record last month, bourse data showed.