Nickel Plunging Into Bear Market on Biggest Glut in 4 Years

Bloomberg reports that nickel is heading for the biggest glut in four years, driving prices lower into 2012.

The market news is quoted as saying,

Next year’s surplus will rise to 60,000 metric tons from 12,000 tons in 2011, making nickel the most oversupplied metal relative to output or use, according to Bank of America Merrill Lynch, the most-accurate forecaster tracked by Bloomberg over two years. New mines will boost supply 11 percent in 2012, the most in 17 years, Macquarie Group Ltd. says. Prices may drop 12 percent to $20,000 a ton by Dec. 31, the median estimate in a Bloomberg survey of 17 analysts and traders shows.

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