Metal prices were trading higher with Peak Trading Research saying a weaker U.S. inflation print would point to a dovish Fed, lower interest rates and a weaker dollar.
Nickel is stuck in a supply glut that will take some time to clear, BMI said, as it downgraded its forecast for 2024 to $20,000/metric ton from $20,600/ton before. Weak demand in China and a subdued growth outlook across major markets will cap prices, BMI added.
Lithium investors are likely to experience further pain before any recovery in prices, according to Morgan Stanley. The China lithium carbonate price has fallen to roughly $12,000/metric ton, down 80% in 2023 and its lowest value since mid-2021. The battery metal’s dramatic retreat has sparked debate on whether prices may be near a nadir.