The metal for the June contract gained Rs 1.90, or 0.16% to Rs 1,208 per kg, with a business volume of 72 lots at the MCX.
The nickel gained one per cent to $26,891 a tonne at the LME in early trade today. Moreover, the good trend at the spot markets due to the rise in the demand from alloy-makers also supported the prices.
There was a steady trend in copper and other base metals at the LME since a weaker dollar raised demand for the commodities which also supported the prices.
Some of the major features of the world nickel market are that it is characterized by rising demand and constrained supply and it is more than 54% if world total supply comes from only five companies.
The global nickel consumption is growing by an average 3.1 per cent a year. Major producers of Nickel are Russia, followed by Australia, Canada, New Caledonia and Indonesia, which represents over 65% of total world production
Nickel finds its usage in various industries like engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging, Batteries etc.