Nickel up by 0.5% on spot demand

Nickel futures traded 0.48% higher at Rs 591 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 in base metals pack, restricted the gains.

Nickel for delivery February gained Rs 2.80 or 0.48% to Rs 591 per kg in a business turnover of 165 lots in futures trading at the Multi Commodity Exchange.

The metal for delivery in January contracts was up Rs 2.70 or 0.46% to Rs 585.60 per kg in 1,468 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, limited the gains.
 
Nickel, used for producing stainless steel, dropped as much as 0.8% at the London Metal Exchange after gaining 3.6% last week, its best performance since the week ended October 9.