Nickel futures fall on sluggish demand

Nickel futures prices fell by 0.30% today as speculators reduced their positions, influenced by a weak trend in the spot market due to slackened demand from alloy-makers, even as the metal strengthened on the London Metal Exchange.

At the Multi Commodity Exchange, nickel for delivery in November fell by Rs 3.40, or 0.38%, to Rs 882.40 per kg, with an open interest for 766 lots.

In addition, the metal for delivery in December lost Rs 3.20, or 0.36%, to Rs 892.80 per kg, with a trading volume of 400 lots.

Meanwhile, nickel climbed by 0.4% to $17,120 per tonne on the LME.

Market analysts attributed the fall in nickel futures prices to a weakening trend in the domestic spot market due to subdued demand from alloy-makers, but said gains on the LME restricted the decline.