Nickel futures weaken on global trend, sluggish demand

Amid weak trend at the London Metal Exchange (LME)and subdued domestic demand, nickel prices moved down by 0.43 per cent in futures trading today. 

At the Multi Commodity Exchange counter, nickel for delivery in January moved down by Rs 10.60, or 0.89 per cent, to Rs 1,175.50 per kg, with an open interest of just one lot.

Similarly, the metal for delivery in February weakened by Rs 9.60, or 0.80 per cent, to Rs 1,183.20 per kg, with an open interest of just one lot.

Meanwhile, nickel futures prices declined 0.5 per cent to $28,250 a tonne at the LME. 

Market analysts said the fall in nickel futures was attributed to weak trend in the base metals at the LME on demand concerns after the China, world largest consumer of metals, raised borrowing costs for the third time in four months.

Besides, slackened demand from alloy makers at the domestic spot market also weighed on the metal prices, they said.