The Hindu Business Line : Base metals futures up on global cues

NEW DELHI: Base metals strengthened on the domestic futures market on Wednesday largely in tandem with firming global markets as weak dollar triggered buying. Nickel, mainly consumed by stainless steel makers, jumped 3.5 per cent, mainly buoyed on repor ts that Xstrata Plc, the world's fourth-largest producer of the metal, suspended production at its Falcondo ferronickel mining operations in the Dominican Republic.

Expectations of pick up in Chinese demand for copper, a metal used in power and construction sectors, and other base metals also supported the metal prices. The far-month October contract for Nickel was trading 3.50 per cent higher at Rs 862.50 per kg o n the Multi Commodity Exchange at 1315 hrs.

August and September contracts too were up trading in positive zone with a rise of 0.43 and 0.31 per cent at Rs 849.50 per kg and Rs 860 respectively. Globally, nickel prices jumped 7.3 per cent to 19,395 US dollar per tonne.

Falcondo has an annual capacity of 29,000 metric tons of nickel contained in ferronickel, or about 2 per cent of world output estimated at 1.45 million tons last year by UBS AG. “Combination of supply concerns, weakening US dollar and pick up in Chinese demand, drove base metal prices higher,'' said G Harish of Karvy Comtrade. –PTI

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