nickel price to halve in months

Citigroup are the most respected base metals analysts on the planet. This is what they said today: FACTS, not lies.

"Nickel May Fall on Speculation Buyers Deterred; Copper Drops

By Chanyaporn Chanjaroen and Brett Foley

June 6 (Bloomberg) -- Nickel may fall for a second straight day in London on speculation that the metal's rally over the past year high will deter buyers. Aluminum declined.

Stainless-steel mills, the largest nickel users, are consuming inventories, reducing purchases and switching to cheaper raw materials, Citigroup Inc. analysts Alan Heap and Alex Tonks in Sydney said yesterday in a report. Supply will rise in ``coming months,'' creating a surplus next year, they said.

``We have seen a material change in sentiment in nickel,'' Michael Jansen, a metals strategist at JPMorgan Securities Ltd. in London, said in an interview. ``People are now accepting that substitution is an issue and demand will be lower as a result

Nickel for delivery in three months on the LME rose $100, or 0.2 percent, to $46,300 a metric ton as of 10:38 a.m. local time, after earlier declining as much as 1.1 percent to $45,700. It has more than doubled in the past 12 months and traded at a record $51,800 on May 9.

Inventories of the metal monitored by the LME have risen 26 percent this year to 8,406 tons. Prices probably will halve in coming months as supply increases, the Citigroup analysts said."

Read the last sentence. PRICES PROBABLY WILL HALVE IN COMING MONTHS. Nickel to go back to $25000 this year. The party is over.