Nickel up by 0.8%, helped by spot demand

Increased demand from alloy-makers amid covering-up of short positions by speculators also helped prices

Nickel futures traded 0.79% higher at Rs 556.50 per kg today, mostly in line with a firming trend at the domestic spot markets on increased demand from alloy-makers amid covering-up of short positions by speculators.

However, a weak trend overseas as base metals continued to suffer from slowing growth in China, the world's biggest consumer, restricted the gains.

Nickel for delivery this month gained Rs 4.30 or 0.79% to Rs 556.50 per kg in a business turnover of 798 lots in futures trading at the Multi Commodity Exchange.

The metal for delivery in February contracts was up Rs 4.10 or 0.73% to Rs 562.20 per kg in 17 lots.

Analysts attributed the rise in nickel prices at futures market to increased demand from alloy-makers at the domestic market but base metals sliding overseas on slowing growth in the world's biggest consumer, China, limited the gains.