The metal for the June contract lost Rs 8.50, or 0.81%, to Rs 1,038.10 per kg, with a trade volume of 5,601 lots at the MCX.
The nickel fell by 1.3% to $22,950 a tonne on the London Metal Exchange.
Moreover, there was a decline in the trend in the entire base metals pack at the London Metal Exchange (LME) on demand concerns which also influenced 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.