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Nickel futures prices today dropped 0.70% to Rs 832 per kg in as speculators reduced their holdings on sluggish demand from alloy makers in the spot market and a weak trend overseas.
At the Multi Commodity Exchange, nickel prices for delivery in July dropped by Rs 5.90, or 0.70%, to Rs 832 per kg in a business turnover of 1,035 lots.
Metal prices for delivery in August contracts fell by a similar margin to trade at Rs 840 per kg in a turnover of 50 lots.
In the international market, nickel prices slumped 1.3% to $13,855 per tonne on the London Metal Exchange. Prices are down 19% this year after touching a four-year low of $13,525 on June 25.
Market analysts said besides subdued demand from alloy makers in the spot market, a weak global trend on rising stockpiles and the financial crisis in Europe will further depress metal's demand in the region.
The increased political tension in Egypt, mainly weighed on nickel futures here.
Meanwhile, nickel stockpiles monitored by the London Metal Exchange rose one% to a record 1,90,590 tonnes.
