Nickel prices increased by 1.42 per cent to Rs 1,438.5 per kg in the futures trade on Friday, as speculators built up fresh positions amid rising demand from alloy makers in the spot market.

On the Multi Commodity Exchange, nickel contracts for the July delivery gained Rs 20.1, or 1.42 per cent, to Rs 1,438.5 per kg in a business turnover of 1,326 lots.

A rise in demand in the spot market from alloy makers mainly supported the price rise in nickel futures, analysts said.