Overseas cues, spot demand lift nickel 0.79%

Speculators raise bets as higher offtake from alloy makers propels prices

Nickel prices went up by 0.79 per cent to Rs 613 per kg in futures trade today as speculators raised their bets, driven by a firming trend overseas and pick up in demand at the domestic spot markets.

In futures trading at the Multi Commodity Exchange, nickel for delivery in January 2016 spurted Rs 4.80, or 0.79 per cent, to Rs 613 per kg in a business turnover of 4 lots.

December nickel was trading higher by Rs 3.40, or 0.57 per cent, to Rs 605 per kg in 436 lots.

Analysts said besides rising demand from alloy makers at domestic spot markets, a firming trend in base metals at the London Metal Exchange (LME) after a report that Eramet SA plans to end nickel matte output in New Caledonia, the latest response from producers to low prices, influenced nickel futures here.
 
At the LME, nickel, used to make stainless steel, climbed as much as 1.3 per cent to $9,100 per tonne.