Nickel recovers by 0.8% as demand picks up

Speculators created fresh positions, helping prices

Amid pick up in demand from alloy-makers at domestic spot markets, nickel prices recovered 0.77% to Rs 627.90 per kg in futures trade today as speculators created fresh positions.

However, weakness in base metals at the London Metal Exchange (LME) amid concern that demand is weakening in China, the world's biggest user, capped the gains.

At the Multi Commodity Exchange, nickel for delivery in November moved up Rs 4.80, or 0.77% to Rs 627.90 per kg in business turnover of 1,870 lots.

Similarly, the metal for delivery in December contracts edged up Rs 4.60, or 0.73% to Rs 633.70 per kg in 67 lots.

Marketmen attributed the rise in nickel prices in futures trade to fresh buying by participants due to pick up in demand from alloy-makers in the spot market.