Nickel falls by 0.6% on muted demand

Participants trimmed their exposure, taking weak cues from an overseas market

Taking weak cues from an overseas market and subdued demand at the domestic spot market, nickel prices dropped 0.58% to Rs 837.70 per kg in futures trade today as participants trimmed their exposure.

At Multi Commodity Exchange, nickel for delivery in June dropped Rs 4.90, or 0.58%, to Rs 837.70 per kg in a business turnover of 237 lots.

The metal for delivery in July also fell by Rs 4.80, or 0.56%, to Rs 845.10 per kg in a turnover of 31 lots.

Analysts said the fall is mostly in line with a weakening trend in base metal at the London Metal Exchange (LME) where it fell to a 1-week low on signs that supplies are plentiful as demand eased in China, the world's top user of industrial metals.

Inventories, monitored by the LME, have climbed 13% this year.

Furthermore, subdued demand from alloy-makers at the spot market, weighed on metal prices, they said.