Nickel falls by 1.8% on weak global cues

Tracking a weak trend overseas, nickel prices dropped by 1.83% to Rs 559.40 per kg in futures market today as participants trimmed their positions.

Moreover, muted demand from consuming industries at the domestic spot markets, weighed on prices.

At the Multi Commodity Exchange, nickel for delivery in January month fell by Rs 10.40 or 1.83% to Rs 559.40 per kg in a business turnover of 1,733 lots.

On similar lines, the metal for delivery in February contracts declined by Rs 9.80 or 1.70% to Rs 565.50 per kg in 122 lots.

Analysts said besides a weak trend in base metals in global markets after muted Chinese inflation data increased concern about slowing growth in the world's biggest consumer, low demand from alloy-makers at domestic spot markets, mainly pulled down nickel prices at futures trade.
 
Meanwhile, nickel dropped 2.7% to $8,330 a metric tonne on the London Metal Exchange.