Nickel up 0.6% on positive global cues, spot demand

Amid pick-up in demand from alloy-makers at domestic spot markets and a firming trend in base metals overseas, nickel prices edged higher 0.56% to Rs 645.20 per kg in futures trade today as speculators raised their bets.

At the Multi Commodity Exchange, nickel for delivery in current month was trading higher by Rs 3.60, or 0.56%, to Rs 645.20 per kg in a business turnover of 1,804 lots.

The metal for delivery in December rose by Rs 3.60 to trade at Rs 651.90 per kg in 132 lots.

Analysts attributed the rise in nickel prices in futures trade to fresh buying by participants due to pick-up in demand from alloy-makers at the spot market and a firming trend at the London Metal Exchange where it rallied from its lowest level in over two months as supplies in China, the biggest consumer, start to tighten.

Globally, nickel, the metal used to produce stainless steel, increased as much as 1.3% to $9,750 per tonne and was 0.9% higher at $9,720 per tonne in Shanghai.